Cairn's expansion plans delayed due to ONGC

Posted By: Religare
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Cairn's expansion plans delayed due to ONGC
Cairn India is looking forward for restructuring its business directly under Cairn India but ONGC which has 90 per cent stake in six of Cairn properties has not yet given the no objection certificate for this plan. The restricting plan has been delayed since last year.

The company has sought an NOC from NSE and BSE where it is listed in 2009 itself even the shareholders have agreed upon the scheme in Feb 2010. Chennai court approved the scheme in April 2010 while Bombay court did that in June, 2010.

The company wants to transfer its stake in different subsidiaries such as Rajasthan oilfields etc under one company in India. This is been proposed by the company to bring its Indian oil and gas exploration and production business under one roof and get away with not required hierarchy.

The company also states that this restructuring plan have nothing to do with its deals with Vedanta Resources.

Read more about: cairn india, oil and gas, bse, nse
Story first published: Wednesday, July 20, 2011, 12:32 [IST]
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