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VEDL - Vedanta News Story

₹293.1 -6.5  -2.2%

Last Trade - 24/09/21

Sector
Basic Materials
Size
Large Cap
Market Cap £10.73bn
Enterprise Value £12.65bn
Revenue £9.92bn
Position in Universe 47th / 3149

UPDATE 1-Vedanta makes $2.3 bln bid to buy out minorities in Cairn India

Sun 14th June, 2015 11:19am
(Adds details, executive comments) 
    By Aman Shah 
    MUMBAI, June 14 (Reuters) - India's largest private sector 
miner Vedanta Ltd  VDAN.NS  has offered to buy out minority 
shareholders in cash-rich unit Cairn India  CAIL.NS , with a 
$2.3 billion all-share offer that would help parent Vedanta 
Resources repay hefty debts. 
    Shareholders in Cairn India, India's top private sector oil 
producer, will get one share in Vedanta Ltd for every share 
held, the companies said in a joint statement after their boards 
approved the transaction on Sunday.  
    The shareholders will also get one redeemable preference 
share in Vedanta Ltd with a face value of 10 rupees, making the 
deal worth roughly $2.3 billion. That implies a premium of 7.3 
percent to Cairn's Friday close. 
    Vedanta began simplifying its complex structure with a 2012 
overhaul, but further moves to simplify the group and buy out 
minorities in cash-rich units have long been awaited by the 
market. Cairn India has a $2.6 billion cash pile. 
    The merger, trailed over the past week and announced on 
Sunday, is the first major step under chief executive Tom 
Albanese, the former Rio Tinto  RIO.AX   RIO.L  boss appointed 
last year, to streamline the group and help cut back its debt. 
    London-listed Vedanta Resources Plc  VED.L , controlled by 
one-time scrap metal dealer Anil Agarwal, currently holds a 
majority interest in Mumbai-listed operating unit Vedanta Ltd, 
which in turn holds a 59.88 percent stake in Cairn India. 
    Vedanta Ltd also holds other assets, including a stake of 
about 65 percent stake in Hindustan Zinc  HZNC.NS , expected to 
be the next target of the group's clean-up effort. 
    Albanese said in the company statement on Sunday that the 
deal would result in improved financial flexibility to allocate 
capital to the highest return projects and sustain strong 
dividends. 
 
 (Writing by Sumeet Chatterjee; Editing by Clara Ferreira 
Marques and Mark Potter) 
 ((sumeet.chatterjee@thomsonreuters.com; +91-22-61807068; 
Reuters Messaging: 
sumeet.chatterjee.thomsonreuters.com@reuters.net)) 
 
Keywords: CAIRN INDIA M&A/VEDANTA
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