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Govt may not discuss Cairn deal this week 14 MAR, 2011, 03.54AM

NEW DELHI: The government's approval to the $9.6-billion Cairn-Vedanta deal is unlikely this week as the matter is not in the agenda of the cabinet which is meeting on Tuesday.

The cabinet is expected to consider the contentious issue of royalty payment for the oil produced from Cairn's Rajasthan block soon before giving its approval to the deal.

The oil ministry has recommended two options to the cabinet: Either the government should ask Cairn to accept ONGC's view that the royalty burden should be shared by all parties, or let the dispute be resolved legally.

ONGC holds 30% in the block but pays the entire royalty. ONGC says that according to the production sharing contract, royalty costs can be recovered from the revenue of the field, which is contested by Cairn.

Energy
14 MAR, 2011, 03.11PM IST,PTI
Will Cairn be asked to reapply for govt nod?

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Read more on »vedanta resources|united kingdom|india|cairn india ltd.


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NEW DELHI: Mining group Vedanta Resources' $9.6 billion acquisition of Cairn India is not listed for consideration by the Union Cabinet this week amid talk that Cairn may be asked resubmit applications seeking government approval for the deal without attaching any conditions.

Cairn India had on November 23 last year, more than three months after its parent firm Cairn Energy announced the sale of its majority stake in the company to Vedanta, made conditional applications, which have come in for questioning following a Delhi High Court ruling.

"As of now, it is not listed on the agenda of the Cabinet meeting slated for tomorrow," an Oil Ministry source said.

The Delhi High Court had last week upheld the state's sovereignty on the grant of consent in case of "any material change in the status of the companies or their shareholding".

It used this ground to allow the government to terminate Canoro Resources' contract for the Amguri oilfield in Assam. The Canadian firm had sold shares to Barbados-based MASS Financial Corp without seeking prior government nod.

Sources said Cairn, after repeated reminders, had on November 23 applied for the sale of a 51 per cent stake to Vedanta, but with a rider that government consent was not mandatory and that the corporate deal involving a share transfer does not trigger partner state-owned ONGC's preemption rights.

This is contrary to the Delhi High Court ruling that held the government's right to approve transactions resulting in a change in the status of companies, they said, adding that after the deal, Vedanta will have a 60 per cent stake in Cairn India, a material change in a firm that controls the nation's largest oilfield.

The Oil Ministry had opposed the conditional application, which is mentioned in the note for Cabinet seeking approval for the $9.6 billion deal.

This was also cited in the draft note it sent to the Prime Minister's Office for inclusion in his reply to UK Prime Minister David Cameron's letter alleging delays in approval of the deal.

"The question before us is if we can apply different standards to Canoro and Cairn," the source said. "So far, no decision has been taken."

Cairn's application stated, "No consent is required or contractually called for," and it was seeking the nod as a responsible citizen which fully respects sovereignty.

The Delhi High Court in its ruling said: "An interpretation, either of a law or a contract, which impinges on the sovereign power of the state to safeguard its vital and strategic interests (and not just commercial interests), would be eschewed by the court to save the law, or the contract, from being void on the ground of it being opposed to public policy."

14 MAR, 2011, 04.38PM IST,PTI
SEBI clears Cairn-Vedanta deal

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Now, Cairn-Vedanta deal hinges on ONGC approval
NEW DELHI: Market regulator Sebi has cleared the acquisition of Cairn India by NRI billionaire Anil Agarwal-led Vedanta Resources , removing a major hurdle for the $9.6 billion dollar deal announced about seven months ago.

The deal was announced in August 2010 and has since then been awaiting approvals from Sebi and the government.

The government is yet to approve the deal, wherein British energy giant Cairn Energy agreed to sell its majority stake in Cairn India to Vedanta group.

After seeking numerous clarifications on the deal from acquirer over the past seven months, Sebi has issued its final observations on the mandatory open offer to be made to the public shareholders as part of the deal.

Any deal involving acquisition of 15 per cent or more stake in a listed company requires the acquirer to make an open offer for 20 per cent stake purchase from public shareholders and this offer needs to be approved by Sebi.

Soon after announcing the deal to acquire up to 51 per cent stake in Cairn India, Vedanta group had sought Sebi's approval for the mandatory open offer to be made to the public shareholders of the target company.

In the public offer announced on August 17, Vedanta group had offered to acquire up to 20 per cent stake from public shareholders for a price of Rs 355 per share.

The Rs 13,631 crore open offer was first scheduled to open on October 11 and close on October 30, but got affected due to delay in Sebi approval for the same.

The company will now have to announce a fresh schedule for the open offer, where it may have to incorporate various clarifications sought by Sebi during the course of its due diligence on the proposed transaction.

Cairn India shares today closed 1.5 per cent higher at Rs 346.20 at the BSE.

The deal is currently awaiting an approval from the Cabinet Committee on Economic Affairs (CCEA).

The Oil Ministry last month circulated a draft note for the CCEA approval, but comments on the same have not been received from all the ministries.

Oil ministry will move Cabinet Committee on Economic Affairs (CCEA) once comments from ministries of finance, law, home, environment and corporate affairs are received.

In all probability, the CCEA is likely to give an in- principal nod to the deal where London-based mining group Vedanta, which has no prior experience in oil sector, is buying up to 51 per cent stake of UK's Cairn Energy Plc.

Oil Ministry has watered down its preconditions and has almost withdrawn its condition that Rs 21,802 crore in royalty and cess paid by ONGC on behalf of Cairn India from the Rajasthan oilfields should be equitably shared.

Le gvt indien n'a pas mis l'approbation du deal au menu de la réunion de demain... ce sera donc, peut-être, la semaine suivante...

Concernant le jugement de la haute cour de justice, c'en est presque risible : The Delhi High Court in its ruling said: "An interpretation, either of a law or a contract, which impinges on the sovereign power of the state to safeguard its vital and strategic interests (and not just commercial interests), would be eschewed by the court to save the law, or the contract, from being void on the ground of it being opposed to public policy."
--> ils expliquent qu'il faut maintenir la souveraineté de l'état pour la sauvegarde des intérêts vitaux et stratégiques...
Un étranger (Cairn, écossais) vend le plus grand gisement pétrolier (intérêt stratégique) à un autochtone (VED, anglo-indien), ça va dans le bon sens pour le pays !

Ved a déposé une demande pour faire une offre d'achat sur la bourse de New Delhi courant octobre, et ils viennent d'obtenir l'accord du Sebi (AMF indien) !

Finalement, que ce soit en Inde ou en Zambie, l'administration sait faire preuve d'une incroyable célérité.

Energy
14 MAR, 2011, 05.44PM IST,PTI
SEBI says Cairn-Vedanta deal not yet cleared; issue still under process

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SEBI approves $9.6 billion Cairn-Vedanta deal
Cairn India Ltd.
BSE
346.20
01.48%05.05
Vol:154362 shares traded
NSE
345.80
01.41%04.80
Vol:1021310 shares traded
Prices|Financials|Company Info|Reports
RELATED ARTICLES
Will Cairn be asked to reapply for govt nod?
Govt may not discuss Cairn deal this week
Cairn to start drilling for oil in Sri Lanka in July
Buy Cairn India: Ashwani Gujral
Cairn India is a hold: Sudarshan Sukhani, Technical Trends

NEW DELHI: Market regulator SEBI on Monday said it has not yet cleared Vedanta group's open offer for Cairn India, a mandatory requirement for conclusion of London-based mining group's $9.6 billion acquisition to foray into oil sector.

Sebi's official website this afternoon showed that the regulator has cleared Vedanta group's Rs 13,610 crore open offer for acquiring 20 per cent stake in Cairn India. But soon after, the market regulator corrected the information, saying that the issue was still under process.

Its website www.sebi.gov.in at 1700 hrs showed the status of the open offer as "under process", a contrast from what had appeared about an hour back.

When contacted, Sebi officials said that it was "an inadvertent error" when the website showed "final observations issued" by Sebi for the proposed transaction. Sebi's final observations are the go-ahead for an open offer.

The official said that the open offer was yet to be cleared by Sebi.

London-listed Vedanta had in August last year agreed to buy up to 51 per cent stake in Cairn India from Cairn Energy Plc. Following the acquisition, its group firm Sesa Goa was to make an open offer for buying an additional 20 per cent in the company that owns India's largest onland oil field.

But the company could not make the open offer following an oil ministry intervention with SEBI. The ministry said the deal was contingent upon government approval, which is still under process.

SEBI is holding back the approval for the open offer as the government is yet to give its go ahead.

Some in Cairn/Vedanta had wanted to delink the government approval and the open offer saying even if the State consent was not to come, Vedanta could become a minority shareholder in Cairn India.

But SEBI has refused to delink the issue as the Rs 355 per share open offer price is part of the $9.6 billion transaction and the open offer can only be made if the original deal had been concluded.

The Rs 13,631 crore open offer was first scheduled to open on October 11 and close on October 30, but following the oil ministry letter, SEBI refused to give approval to the issue.

En résumé, dès que le gvt indien donnera son accord, la SEBI donnera aussi son accord.
Et tant que le gvt indien ne donne pas son accord, la SEBI ne donne pas son accord (parce qu'ils estiment que l'achat des 20% d'actions sur la bourse de New Delhi fait parti du deal global, et qu'il faut l'accord du gvt pour effectuer le deal global...)

L'accord de la SEBI est donc acquis, et est dans l'attente de l'accord du gvt indien...

En fait beaucoup de manières pour un accord qui tombera quand même, car comment le gouvernement indien pourrait justifier son refus du rachat d'une entreprise détenue en majorité par un étranger par une entreprise indienne , et dans un domaine devenu stratégique.En fait, il doit falloir "graisser" pas mal de rouages ( je connais un peu le fonctionnement indien ), pour faire arriver l'encre pour parapher enfin l'accord.

Ensuite, viendra l'épisode KR.

Et enfin, des chiffres zambiens..., mais là il ne faut plus parler d' épisodes, mais d'épopée!!

lollolol

et dire que des fois on se plaint de la zambie

et dire que des fois on se plaint de la France...