Lun 12 Déc 2011 15:56
Vedanta seals the deal; acquires 58.5% in Cairn India for $8
London/New Delhi, Dec 8: Almost 16 months of protracted wrangling between Cairn Energy, ONGC, and Petroleum Ministry ended today with Vedanta Resources Plc completing its acquisition of Cairn India.
Mines and metals entrepreneur Mr Anil Agarwal's Vedanta Group has acquired a 58.5 per cent stake in Cairn India for $8.67 billion, the two companies said on Thursday. It has ended a period of uncertainty for Cairn India, which was caught in the crossfire as ONGC and Cairn Energy sorted out the issue of royalty payment for the premium Rajasthan oilfields.
Though both companies gave assurances that the deal would be completed in December, many feared that the dispute would carryon into the New Year.
Vedanta Resources Plc now holds 38.5 per cent in Cairn India, and its subsidiary, Sesa Goa Ltd, holds 20 per cent. Cairn Energy will retain 22 per cent, 10 per cent are with institutions, 2.7 per cent with retail investors and the balance with FIIs.