Sebi told to look at Burren’s HOEC offer

In a far-reaching intervention in corporate takeovers, the Securities Appellate Tribunal (SAT) has directed market regulator Sebi to consider the objections to the public offer of Burren Energy India for 20 per cent shares of Hindustan Oil Exploration Company (HOEC).

The objections came from Hardy Oil and Gas PLC, which holds an 8.5 per cent stake in HOEC. Hardy sought a stay on the public offer of 20 per cent by Burren Energy of the shares in HOEC in view of violations of the takeover code regulations.

In its order dated August 17, SAT directed Sebi to re-examine the complaint of Hardy and pass an order within 12 days.

In the appeal by Hardy before the tribunal, the company has mainly raised an issue of violation of Regulation 22(16) of the takeover code, which mandates that any agreement between the acquirer of shares in a target company and the seller has to be conditional, on the acquirer complying with the full obligations under the takeover code.