Although vedanta group owns majority stake in cairn india, it needs the approval of a good number of voting public shareholders to see through the merger. Cairn india merger with vedanta only after share release. Under this offer, cairn india shareholders will get one vedanta share and 4 redeemable preference shares for. In july last year, vedanta had sweetened its merger proposal to win over minority shareholders like lic. Explore cairn vedanta merger profile at times of india for photos, videos and latest news of cairn vedanta. At the time of the merger talks, cairn had cash and cash equivalents of about rs 25,000 crore, while vedanta had about rs 78,000 crore of debt. Cairn india merges with vedanta the economic times.
This merger consolidates vedanta s position as one of the worlds. The two companies announced plans of the merger in june 2016, which would give the metals and mining company vedanta access to the cash of cairn india, helping it cut debt. Vedanta ltd today said it has received all approvals for its merger with cairn india barring the rbi nod for issuing redeemable preference shares to the nonresident shareholders of the oil producer. Apr 11, 2017 vedanta completes cairn merger energy press trust of india updated. The approval took place after vedanta had to sweeten the initiallyproposed merger ratio of 1.
Cairn will get exposure to well invested tier1 metals and mining assets of vedanta. Vedantacairn india merger plan comes under flak the hindu. Vedantacairn merger effective company announcement. The merger of cashrich oil producer cairn india into its debtridden parent vedanta ltd has become operational starting tuesday. Jun 15, 2015 5 important things about the vedanta cairn merger 1 merger ratio. Apr 11, 2017 vedanta limited vedanta and cairn india limited cairn india today announced that the merger of cairn india with vedanta pursuant to the scheme of arrangement has become effective. For vedanta, the merger will simplify the group structure, derisk earnings volatility and allow flexibility to allocate capital. Vedanta completes cairn india acquisition business. Shares of the cashrich oil producer opened at rs 309 and touched an intraday. Cairn india shareholders today approved merger of the company with its parent vedanta ltd after lic and cairn energy plc of uk voted in favour of the sweetened merger ratio. Mining group vedanta resources today completed the long delayed acquisition of oil producer cairn india ltd, after 16 months of protracted wrangling over royalty payments. Vedanta completes cairn merger companies news zee news. In 2015, sterlite industries and sesa goa announced their merger and finally merged. Vedanta resources bonds rise after cairn merger deal.
But upon consolidation, this intercompany transaction gets eliminated. Shareholders of cairn india limited approved the merger with vedanta. Cairn india advanced as much as 3 per cent in early trade. Vedanta completes cairn merger energy press trust of india updated.
Vedanta, the local arm of the lselisted vedanta resources said that cairn india has been merged with the company effective from tuesday. Anil agarwals vedanta group had in 2011 acquired cairn india from its british promoters, cairn energy plc, and last year proposed to merge the firm with vedanta ltd. This merger consolidates vedantas position as one of the worlds. Sudhir mathur, acting ceo of cairn india, said the merger with vedanta ltd will derisk cairn india by providing access to a portfolio of diversified tieri, low cost, longlife assets to deliver. We empower our people to drive excellence and innovation to create value for our stakeholders. Jan 16, 2018 cairn india shareholders today approved merger of the company with its parent vedanta ltd after lic and cairn energy plc of uk voted in favour of the sweetened merger ratio.
The merger with vedanta ltd will derisk cairn india by providing access to a portfolio of diversified tieri, low cost, longlife assets, to deliver significant near term growth, while retaining. Uks cairn energy set to vote against vedantacairn india merger. In a statement the company announced the effective merger of the two companies on tuesday. Apr 11, 2017 the merger with vedanta ltd will derisk cairn india by providing access to a portfolio of diversified tieri, low cost, longlife assets, to deliver significant near term growth, while retaining. Vedanta limited shareholders approve merger of cairn india. However, a tax demand on both cairn energy plc and cairn india under a retrospective legislation is now posing as a hurdle to the merger. The intercompany debt has been duly considered while arriving at the valuation of both cairn and vedanta and this is getting adequately reflected in the swap ratio, said jalan. Profit opportunities from vedanta and cairn india merger. I am pleased that the shareholders of cairn india have approved the merger of cairn india with vedanta limited. Shares of cairn india and vedanta hogged limelight in early trade on tuesday after they announced that the merger of former into its debtridden parent vedanta has become effective. Cairn india shareholders approve merger with vedanta. In 2015, sterlite industries and sesa goa announced their merger and finally merged into a single entity in august 2015. After the merger, vedanta resources will have four subsidiaries, down from nine in 2011.
Vedanta resources plcs 2021 notes are set for their biggest gain in more than three months after its indialisted mining subsidiary sweetened the terms of a merger with cairn india ltd. The merger of cairn india with vedanta was never going to be easy. Cairn indias merger with vedanta may fall through business. Jul 22, 2016 unable to quickly absorb its cashrich oil subsidiary cairn india, mining billionaire anil agarwals vedanta ltd today sweetened the merger deal by offering three additional preference shares. Vedanta limited vedanta and cairn india limited cairn india today announced that the merger of cairn india with vedanta pursuant to the scheme of arrangement has become effective. Unable to quickly absorb its cashrich oil subsidiary cairn india, mining billionaire anil agarwals vedanta ltd today sweetened the merger deal by offering three additional preference shares.
Days after billionaire anil agarwal announced that he would merge the energy company into its parent, stateowned life insurance corp lic, a minority shareholder of cairn india, raised its concern over the valuation for the merger and the debt of the merged entity. Under this offer, cairn india shareholders will get one vedanta share and 4 redeemable preference shares for each share. The merger took place in august 20 and the consolidated group was then called sesa sterlite ltd now vedanta limited. Vedanta sets record dividend payout as cairn india merger. Sudhir mathur, cfo and acting ceo of cairn india, said. The company has fixed april 27 as the record date for. As a part of this merger, vedanta group transferred its stake in cairn india to sesa sterlite6. Vedanta, cairn set to merge business standard news. This merger consolidates vedanta s position as one of the worlds largest diversified natural resources companies, with worldclass, lowcost assets in metals and mining and oil and gas, a statement by the two firms said. Vedanta sweetens cairn merger deal with 1 the financial express. The merger will add zinc, copper, and aluminium in its portfolio.
The name of sesa sterlite was subsequently changed to vedanta limited in april 20157. Cairnvedanta merger faces big challenges cairn indias minority shareholders do not see the deal in their interest. The merger of cairn india with vedanta has been completed, the two companies controlled by billionaire anil agarwal, have said. Cairn india shareholders approve merger with vedanta the.
Jul 22, 2016 vedanta limited on friday announced a revised offer for cairn india merger. Vedanta limited on friday announced a revised offer for cairn india merger. Jul 25, 2016 vedanta resources plcs 2021 notes are set for their biggest gain in more than three months after its indialisted mining subsidiary sweetened the terms of a merger with cairn india ltd. The company has fixed april 27 as the record date for determining the list of the shareholders of cairn india to whom the equity and preference shares of vedanta ltd earlier known as sesa sterlite. Vedanta is a globally diversified natural resources company with low cost operations. In its 201415 annual report, vedanta limited stated, vedanta operates across the value chain, undertaking exploration, asset development. The merger of cashrich oil producer cairn india into its debtridden parent vedanta ltd is now complete, the two firms announced today. The shareholders of cairn india have approved the merger with vedanta limited, and i am confident that they will benefit from exposure to vedantas. Explore cairn vedanta merger profile at times of india for photos, videos and latest news of cairn vedanta merger. Apr 12, 2016 anil agarwals vedanta group had in 2011 acquired cairn india from its british promoters, cairn energy plc, and last year proposed to merge the firm with vedanta ltd. Mar 31, 2018 sudhir mathur, acting ceo of cairn india, said the merger with vedanta ltd will derisk cairn india by providing access to a portfolio of diversified tieri, low cost, longlife assets to deliver. Anil agarwals vedanta ltd has concluded the merger of cairn india with itself. Vedanta resources plc vedantacairn merger effective.