LONDON (dpa-AFX) - Vedanta Limited, Cairn India Limited and Vedanta Resources plc (VED.L) announced a merger between Vedanta Limited and Cairn India.
The non-conflicted, independent members of the Board of Directors of Vedanta Limited, Cairn India and Vedanta plc have unanimously approved the merger as being in the best interests of their respective shareholders.
On completion of the merger, minority shareholders of Cairn India will receive for each equity share held: One equity share in Vedanta Limited of face value 1 Indian rupees each; One 7.5% Redeemable Preference Share or 'RPS' in Vedanta Limited 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 Limited pursuant to the merger.
Following completion of the Transaction, Vedanta plc ownership in Vedanta Limited is expected to decrease to 50.1% from its current 62.9% shareholding. Cairn India minority shareholders will own 20.2% and Vedanta Limited minority shareholders will own a 29.7% stake in the enlarged entity.
The Transaction is conditional on Vedanta Limited, 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 Limited, Cairn India and their shareholders under Indian Law.
Vedanta Limited will continue to be listed on the BSE Limited ('BSE') and National Stock Exchange of India Limited or 'NSE', with American Depositary Shares ('ADS') listed on the New York Stock Exchange or 'NYSE', and Vedanta plc will continue to be premium 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.
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