A Vedanta group firm’s open offer for Cairn India will not commence on Monday as had been planned earlier, and the company would wait for market regulator SEBI’s approval to launch the same, Group Chairman Anil Agarwal said.

“We will wait for the SEBI approval to launch the open offer for Cairn India,” he told reporters in Mumbai on Monday.

The offer by Sesa Goa, a subsidiary of Vedanta, to acquire an additional 20 percent shares of Cairn India was to have opened on Monday.

London-listed Vedanta Resources is acquiring 40 to 51 percent stake of UK’s Cairn Energy Plc in the firm that owns the nation’s largest onland oilfield for USD 8.48 billion.

Cairn Energy Plc had last week secured the approval of shareholders for sale of majority stake in its Indian arm to Vedanta Resources but the closure of the deal depends on certain conditions, including open offer from Sesa Goa.

As part of the acquisition, Sesa Goa had on 17th August filed papers for making an open offer, which was to open on Monday.

The Group is, however, confident that the company would be able to complete the open offer transaction by early next year.

The deal, worth USD 9.6 billion including the open offer, is contingent upon Vedanta Group completing the open offer.

It is also conditional upon shareholders of Cairn Energy Plc, which holds 62.38 percent stake in Cairn India, and Vedanta Resources passing a resolution to approve the transaction on or before 30th October.

More importantly, the deal is conditional upon required government consent being obtained.

Industry sources said the market regulator may be waiting for the government to give its no-objection to the sale which is centred around the 6.5 billion barrel Rajasthan oilfields.

Oil Secretary S Sundareshan had a few weeks ago written to the SEBI chairman stating that the deal was contingent upon government approval, which has not yet been accorded.

The Supreme Court had earlier refused to restrain Vedanta Resources’ subsidiary Sesa Goa from launching the open offer.

Sesa Goa is offering a price of Rs 355 per share, Rs 50 less than what Vedanta is paying Cairn Energy for the majority stake.

The Rs 50 a share is the fee that Cairn Energy is charging from Vedanta for not competing with it in India, Sri Lanka and Bhutan for next three years.

Vedanta Group not to hike open offer price

The Vedanta Group has ruled out increasing the open offer price to minority shareholders of Cairn India, saying its current offer was “lucrative.”

“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 in Mumbai on Monday.

Vedanta Resources is buying 40-51 percent stake from Cairn Energy Plc and its subsidiary Sesa Goa has filed papers for an open offer for an additional 20 percent stake.

Sesa Goa is offering a price of Rs 355 per share, Rs 50 less than what Vedanta is paying Cairn Energy for the majority stake.

Whereas, the group is offering Cairn India’s parent Cairn Energy Rs 405 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 Rs 50 per share) is very important for us because we do not want Cairn Energy Plc to work in our areas,” Agarwal said.

Sesa Goa’s open offer was to have opened on Monday, but has been delayed due to lack of approval from market regulator Sebi.

On the proposed open offer, Agarwal said Sebi has been asking “normal questions” on the USD 9.6 billion dollars 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.”