Vedanta buy 10% from Cairn India: Tranch one of the deal completed

Stocks

oi-Shoaib MD

By Shoaib Md

Published: Wednesday, July 13, 2011, 10:56 [IST]

Vedanta Resources, the mining group, has completed its first tranche of purchase from the indian subsidiary of Cairn Energy after acquiring a 10% stake for $1.5 billion.

The company, Vedanta Resources, acquired 19.19 crore equity shares of Cairn India at Rs 355 per share. According to the press release Vedanta put the acquisition price at $1.505 billion; meanwhile in a seperate release, Cairn Energy placed the acquisition at $1.36 billion.

Perhaps the difference could be because of the different exchange rates the two companies may have taken.

The company also said in the statement that Cairn Energy is required to sell another 30% of its interest "subject to the necessary consents and approvals from the government of India."

The press statement by Vedanta 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."

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