Incident 2day
The Indian mining group has been trying to buy a controlling stake in Cairn India, which is listed in Mumbai, from London-listed Cairn Energy and smaller shareholders since last summer. However, the deal has been held up by Indian authorities.
Vedanta’s move to buy 10pc of Cairn India from Petronas will cement its majority stake in the company if its delayed deal with Cairn Energy goes through.
In a complex transaction, Vedanta is hoping to buy a controlling stake for up to $9.7bn, partly from Cairn Energy and partly from smaller shareholders through an open offer.
Cairn Energy, which owns a 62pc stake in Cairn India, wants to sell between 40pc and 51pc of the company, whose prime assets are oil fields in the desert region of Rajasthan. It will therefore seek to retain between 11pc and 22pc.
However, Indian regulators and the government are still deciding whether to allow it following a dispute about royalties with the state-owned Oil and Natural Gas Corporation
Vedanta’s move to buy 10pc of Cairn India from Petronas will cement its majority stake in the company if its delayed deal with Cairn Energy goes through.
In a complex transaction, Vedanta is hoping to buy a controlling stake for up to $9.7bn, partly from Cairn Energy and partly from smaller shareholders through an open offer.
Cairn Energy, which owns a 62pc stake in Cairn India, wants to sell between 40pc and 51pc of the company, whose prime assets are oil fields in the desert region of Rajasthan. It will therefore seek to retain between 11pc and 22pc.
However, Indian regulators and the government are still deciding whether to allow it following a dispute about royalties with the state-owned Oil and Natural Gas Corporation
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