Mumbai: The Vedanta Group today ruled out increasing the open offer price to minority shareholders of Cairn India, saying its current offer was "lucrative," reports PTI.
"There is no question (of increasing the open offer price). The price is final and that is a very lucrative offer," Vedanta group chairman Anil Agarwal told reporters here.
Vedanta Resources is buying 40%-51% stake from Cairn Energy Plc and its subsidiary Sesa Goa has filed papers for an open offer for an additional 20% stake.
Sesa Goa is offering a price of Rs355 per share, Rs50 less than what Vedanta is paying Cairn Energy for the majority stake. Whereas, the group is offering Cairn India's parent Cairn Energy Rs405 a share, which includes a fee for not competing with it in India, Sri Lanka and Bhutan for the next three years.
"Non-compete fee (of Rs50 per share) is very important for us because we do not want Cairn Energy Plc to work in our areas," Mr Agarwal said.
Sesa Goa's open offer was to have opened today, but has been delayed due to lack of approval from the Securities and Exchange Board of India (SEBI).
On the proposed open offer, Mr Agarwal said SEBI has been asking "normal questions" on the $9.6 billion deal with Cairn Energy Plc and Vedanta is replying to them.
He said SEBI normally gives approval in 45-60 days and he expects the approval to come "in a few days."
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