15th Jun 2015 05:43
LONDON (Alliance News) - Vedanta Ltd, Cairn India Ltd and Vedanta Resources PLC announced a merger between Vedanta Ltd and Cairn India.
On completion of the merger, minority shareholders of Cairn India will receive for each equity share held: one equity share in Vedanta Ltd of face value 1 Indian rupee each; and one 7.5% redeemable preference share in Vedanta Ltd with a face value of 10 Indian rupees each.
Approximately 752 million of each of equity shares and RPS will be issued to the minority shareholders of Cairn India by Vedanta Ltd pursuant to the merger.
Following completion of the transaction, Vedanta PLC ownership in Vedanta Ltd is expected to decrease to 50.1% from its current 62.9% shareholding. Cairn India minority shareholders will own 20.2% and Vedanta Ltd minority shareholders will own a 29.7% stake in the enlarged entity.
The transaction is conditional on Vedanta Ltd, Cairn India and Vedanta PLC shareholder approvals, as well as Indian High Court, stock exchange and other customary approvals.
The Transaction is expected to be tax-neutral for Vedanta Ltd, Cairn India and their shareholders under Indian Law.
Vedanta Limited will continue to be listed on the BSE and National Stock Exchange of India, with American Depositary Shares listed on the New York Stock Exchange, and Vedanta PLC will continue to be listed on the London Stock Exchange.
Cairn India's BSE and NSE listings will be cancelled following completion of the transaction.
The transaction is expected to close in the first quarter of calendar year 2016.
Cairn Energy PLC holds a 9.8% stake in Cairn India.
Copyright RTT News/dpa-AFX
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Vedanta ResourcesCapricorn Energy PLC