Cairn shareholders approve Cairn-Vedanta merger
Cairn India's shareholders approved the company's merger with Indian mining company Vedanta Limited. The company said the merger has been given approval by a majority of the minority shareholders of the company, which was a mandatory requirement for clearing the deal. It said in an exchange filing that 72.43 percent of the company's public shareholders voted in favour of the merger.
Vedanta to merge with Cairn India in $2.3 billion deal
India's top mineral resources company Vedanta Limited announced that it would take over the oil firm Cairn India in a deal worth $2.3 billion. The deal was stated to be an all-share transaction that was estimated to create the country's biggest natural resources company. The merger was said to lower Cairn India's exposure to only oil, and distribute it to other commodities.
Vedanta-Cairn deal to lower risks from volatile oil markets
"If you look at how global oil and gas business has really suffered because of oil prices (fall in 2014), it clearly demonstrates that diversified groups are better than pure plays. The merger derisks the business and stabilizes revenue stream," Vedanta's CEO Tom Albanese said.
Vedanta revises terms for merger with Cairn
The Anil Agarwal-led Vedanta Limited and Cairn India announced a revised set of terms for their merger in July this year. The revised terms stated that every Cairn India shareholder would receive 1 equity share in Vedanta and 4 redeemable preference shares in Vedanta. The Cairn shareholder will receive the same for each equity share held in the oil company.
Cairn India looks to increase investments with merger
"We will continue to invest in our existing assets to increase production and maximize economic recovery. I remain confident that your company will play a pivotal role in India's quest for energy security," said Cairn India's chairman Navin Agarwal on Vedanta's merger details.
What will the deal result in?
The multi-billion dollar deal will enable the largely indebted mining company to gain access to Cairn India's stock of cash, which presently stands at $3.1 billion. It will also have the company's London-listed arm Vedanta PLC's ownership in Vedanta Limited drop to 50.1 percent from 62.9 percent, after the merger with Cairn. Cairn's minority shareholders will hold 20.2 percent in the merged company.
