Vedanta`s open offer for Sesa Goa begins on Aug 31

Market regulator, Securities and Exchange Board of India (Sebi) has approved the open offer of Vedanta Resources for Sesa Goa yesterday after two months of waiting period due to some legal issues. The company has revised open offer period to August 31-September 19, 2007 from earlier June 21-July 10, 2007, ICICI Securities said in a notice to the stock exchange. Vedanta Resources, a diversified group, bought 51 per cent stake in Sesa Goa, which was held by Japan�s Mitsui & Co in the Indian company, for Rs 4,086 crore in April 2007, outbidding the Aditya Birla Group�s Essel Mining & Industries, and the world�s largest steel company Arcelor Mittal. This acquisition gives control over mines in Orissa, Karnataka and Goa of Sesa Goa The open offer is for more 20% stake in the company after the acquisition at a price of Rs 2,036 per share, which the company made to Mitsui for the acquisition of the majority stake in Indian iron ore exporter, Sesa Goa. Vedanta will finance the deal through a fresh loan of USD 1.1 billion and internal accruals. After this open offer, its stake will go upto 71 percent and will give a strong footing for Agarwal in the company. The other companies of the group are Balco, Hindusthan Zinc, Madras Aluminium and India Foils. Sesa Goa surged 2.86%, to end at Rs 1,926.65 on the BSE. The volumes also increased by 245.62% to 83,734 shares, compared to its 5-day average of 24,227 shares. The company produces nearly 10 million tonnes of iron ore a year and has estimated reserves of 207 million tonnes.