UK-based Vedanta Group said on Tuesday it has received market regulator Securities and Exchange Board of India's nod for a $9.6 billion deal to acquire a 51 per cent stake in Cairn India and will launch an open offer soon.
"We have already received Sebi's approval for an open offer.
"The issue will open very soon. Within the next one to two days, we will send out the mails regarding this to all concerned," Vedanta Group chairman Anil Agarwal told reporters in Mumbai.
The Vedanta chief also appeared confident that the deal to acquire a majority stake in Cairn India, promoted by Edinburgh-based Cairn Energy Plc, would soon receive the approval of the government.
"We have a deadline of April 15 and I believe the government will give its approval before that. . . The royalty issue has to sorted out with the government and the ONGC. We can. . . take up that issue later," he said.
The deal, which has been hanging fire since November, 2010, is likely to be considered for final approval by the Union Cabinet at its meeting in New Delhi on Wednesday.
As per the Takeover Code of the Sebi, the acquirer is required to come out with an open offer to give an exit option to existing shareholders.
The deal was announced in August, 2010, wherein British energy giant Cairn Energy agreed to sell its majority stake in Cairn India to Vedanta group.
However, the deal has been hanging in fire as Cairn India after initial reluctance, made conditional applications for government approval on November 23, more than three months after the announcement of the deal by its parent firm Cairn Energy Plc.
The conditional approval sought by it came with a rider that government consent was not mandatory and that the corporate deal involving a share transfer does not trigger partner state-owned Oil and Natural Gas Coporation's preemption rights.
However, the oil ministry has conditioned the approval to the $9.6 billion deal on Cairn getting a no-objection from ONGC, which holds stake in eight out of the 10