Sesa Goa Ltd Tuesday announced that it has acquired 200 million shares amounting to 10.4 per cent stake in Cairn India from PETRONAS International Corporation Ltd. The investment was at a consideration of $2.1 billion, priced at about 331 rupees per share.
According to Sesa Goa Ltd, the acquisition is in addition to the Open Offer launched by the company on Monday, April 11, 2011 and the Open Offer will continue as per the Letter of Offer dated April 11, 2011. Sesa Goa is India’s largest producer and exporter of iron ore in the private sector. The investment is however still subject to government of India approval.
The company is a majority owned and controlled subsidiary of Vedanta Resources plc, the London listed FTSE 100 diversified metals and mining major. Vedanta Resources Plc acquired a 51 per cent stake in Sesa Goa India in 2007. For over five decades, Sesa has been involved in iron ore mining, beneficiation and exports.
Over the last two decades, it has diversified into the manufacture of pig iron and metallurgical coke. Sesa has mining operations in Goa and Karnataka while it also operates 280,000 tons per year metallurgical coke plant and 250,000 tons per year pig iron plant in Goa.
The Company acquired the shares of Sesa Resources Limited (erstwhile VSD), which in turn holds 100 per cent equity shares of Sesa Mining Corp. Ltd (erstwhile DMC) during 2010 Financial Year.
Sesa Goa is keen on joining the league of top four iron ore producing companies in the World. The company is aggressively seeking additional resources. The firm’s organic growth pipeline is strong as it seeks to continue to deliver significant growth for shareholders in the future.
Sesa Goa has pursued growth across all its business and into new areas, with a view to delivering value for the firm and its shareholders. The latest move by its subsidiary makes Vedanta Resources the second-largest shareholder in Cairn India for which it has made a $9.6-billion bid to buy a majority stake.
The Cairn-Vedanta deal, announced last year, has been dogged by controversy for eight months but the company has obtained the regulator’s approval to launch its open offer. Vedanta reiterated its interest in acquiring Cairn India, which it said would be “immediately earnings accretive” and said it may now acquire up to 70.4 per cent stake in Cairn India, subject to government approval.
Tags: FDI in mining, FDI India, foreign investment in mining, India investments, investments India, mining companies, mining FDI, mining foreign investments, mining India, mining investments, mining news