The Securities and Exchange Board of India has given its nod to Vedanta Resources’ INR 13,160 crore open offer for Cairn India.

Mr Anil Agarwal chairman of Vedanta said “SEBI has given a clearance and the offer will open next week. We will post the mails in a day or two.”

According to the SEBI website, the final observations were issued on March 28 to JM Financial, the merchant banker to the offer.

According to the rules of the market regulator, any company acquiring 15% or more in a listed company is required to make an open offer for at least another 20% stake. Vedanta has offered to pay INR 355 per share to the public for the 20% and has agreed to shell out INR 405 per share to Cairn Energy promoters.

According to the earlier schedule, the open offer was supposed to open on October 11 and close on October 30, 2010. However, regulatory issues had delayed the process. Vedanta's shareholders gave their nod for the deal in the annual general meeting on December 13.

Vedanta had signed the deal with Cairn Energy Plc, last August to buy 51% to 60% stake for USD 8.5 billion to USD 9.6 billion. According to the deal, Vedanta will acquire 31% to 40%and Vedanta's subsidiary, Sesa Goa Ltd will acquire a 20%stake in Cairn India Ltd.

The Cabinet Committee on Economic Affairs is also likely to approve the Cairn Vedanta deal, eight months after it was signed. The deadline for completion of the deal is April 15.

(Sourced from BS)