Cairn Energy shareholders approve stake sale to Vedanta

07 Oct 2010

Shareholders of UK-based Cairn Energy today approved the sale of its majority stake in Cairn India to Vedanta, at a general meeting, CNBC-TV18 reported today.

Vedanta, also a UK-based group, is acquiring Cairn Energy's 70 per cent stake in Cairn India, making its foray into oil and gas.

However, reports said, Vedanta's open offer to Cairn India shareholders is likely to be delayed as the market regulator Securities and Exchange Board of India (SEBI) is yet to give its approval to it. SEBI, meanwhile, is waiting for government nod for the Vedanta-Cairn Energy deal.

Vedanta's open offer of Rs355 per share for Cairn India was scheduled to open on 11 October.

"Both Cairn Energy and Vedanta are in dialogue with the Indian government. ONGC has always been supportive partner and Cairn Energy is in dialogue with them as well. Syndication process for the loan is nearing completion,"  Anil Agarwal, promoter of Vedanta said.

He said the open offer for Sesa Goa will be launched after the SEBI approval as per schedule as mentioned at the time of announcement. "We expect this to be closed in the first quarter of next year and we are on track for that," he added.