Vedanta makes open offer for an additional 20 per cent in Sesa Goa

27 Apr 2007

Mumbai: Vedanta Resources Plc has made an open offer to the shareholders of Sesa Goa Ltd for acquiring an additional 20 per cent stake in the country''s biggest private iron ore exporter for up to Rs1, 603.05 crore.

The company made an open offer to acquire up to 78,72,404 equity shares, representing 20 per cent of the equity share capital of Sesa Goa, at a price of Rs2, 036.30 per share payable in cash, Sesa Goa said in a filing with the Bombay Stock Exchange (BSE).

Vedanta and its two wholly-owned subsidiaries - Westglobe Ltd, Mauritius and Richter Holding Ltd, Cyprus - who made the open offer to the Sesa Goa shareholders in compliance with Securities and Exchange Board of India (Sebi) regulations, will buy pay Rs2,036 ($48.64) for each share, the same price paid for Mitsui`s stake, according to a newspaper advertisement.

The open offer follows the recent deal by Anil Agarwal-led Vedanta for acquiring Japanese firm Mitsui & Co''s 51 per cent stake in Sesa Goa for $981 million (around Rs4,070 crore) in cash.

Vedanta Resources clinched the deal against tough competition from bidders such as Arcelor-Mittal and the Aditya Birla Group, who were also in the fray to acquire 51 per cent stake in Sesa Goa.

The offer is being made to all the public shareholders of Sesa Goa and would remain open from June 21 to July 10.

Vedanta is listed on the London Stock Exchange but has most of its operations in metals such as zinc and aluminium in India. The Sesa Goa stock was trading at Rs1,779, up 0.65 per cent on the BSE.