Vedanta to pick up majority stake in Cairn India

Mumbai, Aug 16 (IANS) Global metals and mining major Vedanta Group Monday said it will acquire 51-60 percent of oil producer Cairn India in a deal worth $8.5-9.6 billion.

The all-cash deal will see Vedanta Resources Plc hold a 31-40 percent stake in Cairn India directly, while its Indian subsidiary Sesa Goa will control 20 percent, the mining company said in a statement to the London Stock Exchange.

Vedanta will acquire these shares from Cairn India’s Edinburgh-based parent company, Cairn Energy, for Rs.355 per share and also pay a non-compete fee of Rs.50 per share.

‘The proposed acquisition significantly enhances Vedanta’s position as a natural resources champion in India. Cairn India’s Rajasthan asset is world class in terms of scale and cost, delivering strong and growing cash flow,’ said Anil Agarwal, executive chairman of the London-listed Vedanta.

Cairn India, the subsidiary of the Edinburgh based Cairn Energy, touched an all-time high of Rs.368, up 3.5 percent from its previous close. It later slipped on profit booking.

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