Home / Business / Money / Vedanta mulls sweetening Cairn India merger swap ratio

Vedanta mulls sweetening Cairn India merger swap ratio

According to the deal proposed by Vedanta, minority shareholders of Cairn India will receive one equity share in Vedanta for each share held, along with one 7.5 percent redeemable preference share with Rs 10 face value.

Pushed to the corner by two large minority shareholders, Vedanta is going back to the drawing board on merging Cairn India with itself. The move comes after shareholders LIC and Cairn Energy PLC refused to play ball seeking a “substantially sweetened” offer.

The minority shareholders had raised concerns over not getting a fair valuation in the all-share merger with parent Vedanta Limited.

According to the deal proposed by Vedanta, minority shareholders of Cairn India will receive one equity share in Vedanta for each share held, along with one 7.5 percent redeemable preference share with Rs 10 face value.

Cairn India’s erstwhile owner, Cairn Plc, owns 9.8 percent stake while LIC has 9.1 percent, which is cumulatively a little less than half of the 40 percent minority stake in the company (Vedanta owns 60 percent). Approval from these two players will then be crucial for the merger to go through.

Leave a Reply

x

Check Also

Rupee recovers 6 paise to 67.01

The rupee today recovered some lost ground by rising 6 paise to ...

Notes ban to have positive impact on economy

NEW DELHI: The government’s demonetisation move has led to widespread adoption of ...