SC refuses to stay Sesa Goa open offer for Cairn
The Supreme Court Friday refused to restrain Vedanta Resources` subsidiary Sesa Goa from launching an open offer to buy 20 per cent stake in Cairn India.
New Delhi: The Supreme Court Friday refused to restrain Vedanta Resources` subsidiary Sesa Goa from launching an open offer to buy 20 per cent stake in Cairn India.
A bench comprising Justices G S Singhvi and Ashok Kumar Ganguly refused to entertain the application filed by one Sesa Goa shareholder Harinarayan G Bajaj saying there is no merit in the application.
The Court further said that it would hear Bajaj`s plea on its main matter on October 28. The main matter pertains to validity of acquisition of Vedanta Group about USD 1 billion acquisition of Sesa Goa from Japan`s Mitsui & Co.
However, senior Advocate Ranjit Kumar appearing for the minority shareholder submitted that by the time the next hearing will take place, it would be too late for the petitioner.
On this, the Court said that whatsoever deal is going on, "would be subject to our final orders," and dismissed the application.
On Wednesday, Bajaj had moved the Supreme Court seeking to restrain the iron ore producer from participating in Cairn India`s takeover by parent Vedanta group, saying the company was under probe for alleged serious frauds.
The petitioner, Harinarayan G Bajaj, said that Sesa Goa`s acquisition by successive players since 1998 has been challenged in the Supreme Court, which has asked the Bombay High Court to hear the case.
Vedanta group has signed a deal to acquire oil MNC Cairn`s Indian arm for USD 9.6 billion for which it is seeking part funding by Sesa Goa, which the London-based group acquired in 2007.
Bajaj had alleged that the company itself was acquired by violating the provisions under the Substantial Acquisition of Shares and Takeover Regulations.
He had sought the court to direct Sesa Goa "to refrain from making any open offer or investing in the shares of Cairn India Ltd till the outcome of this petition."
As per the Cairn-Vedanta deal, London-listed Vedanta Resources will acquire 31 to 40 per cent interest in Cairn India while the remaining 20 per cent would be taken by group firm Sesa Goa.
Bajaj had in 1998 challenged the indirect takeover of the Sesa Goa, before the High Court and later the Supreme Court, where the matter is still pending.