Mining group Vedanta Resources buys 10% in Cairn India

[LesCrozes]

Mining group Vedanta Resources buys 10% in Cairn India for $1.5 billion

13 JUL, 2011, 04.49AM IST,PTI

NEW DELHI: Mining group Vedanta Resources has completed the first tranche of its purchase of Cairn Energy's Indian subsidiary after acquiring a 10% stake for $1.5 billion.

Vedanta acquired 191.92 million equity shares of Cairn India at Rs. 355 per share. The total cash payout worked out to Rs. 6,813.16 crore. While Vedanta's statement put the acquisition price at $1.505 billion, Cairn Energy in a separate statement put it at $1.36 billion.

The difference may be due to the different exchange rates the two companies may have taken. Cairn Energy will sell another 30% of its interest in Cairn India "subject to the necessary consents and approvals from the government of India," the firm said.

"Vedanta continues to work with Cairn Energy to secure the necessary consents to complete the purchase of a further 30% of the fully diluted share capital of Cairn India and a further announcement will be made in due course," a Vedanta statement said.