New Delhi: Sesa Goa, a unit of Vedanta, bought at least 10.5 percent stake in Cairn India as part of a deal valued at 93.5 billion rupees.

Malaysia's state oil firm Petroliam Nasional Bhd (Petronas), sold its entire 14.9 stake in Cairn India. Sesa Goa bought 200 million equity shares at Rs 331 a piece, said sources.

The share sale happened in block deals and the tender price was lower than Rs 355 a share that Vedanta Group is offering for buying 20 stakes in Cairn India through an open offer.

Vedanta group in August last year had proposed to buy up to 51  stake in Cairn India from Edinburgh-based Cairn Energy Plc for as much as USD 8.48 billion.

Subsequent to the deal to buy Cairn Energy at Rs 405 a share, Vedanta group firm Sesa Goa announced an open offer to buy an additional 20  stake at Rs 355 a piece.

The Rs 405 a share price that Vedanta is paying to Cairn Energy includes Rs 50 per share non-compete fee, which is not being paid to minority shareholders.

Sesa Goa's open offer opened on April 11 and will close at the end of the month.

Sources said Petronas was frustrated at growth being impaired at Cairn India and had so decided to exit the company.

Petronas had invested USD 800 million to take a little less than 10 stake in Cairn India when the company got listed in 2006. In subsequent two tranches, it raised the stake to 14.9 but off late it had been frustrated as government delayed approvals to Cairn India to raise output.

Cairn India is producing 125,000 barrels of crude oil per day from the Mangala oilfield in the prolific Rajasthan block. Output can be raised to 150,000 bpd without any new investment, but the Oil Ministry has been sitting on its request for several months now.


Agencies