BackVedanta to acquire up to 5.33% stake in Cairn India
Vedanta will acquire up to 100 million shares of the company from another promoter Twin Star Mauritius Holdings
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New Delhi: Vedanta India will acquire up to 5.33% stake, worth over ₹ 2,200 crore, in its group concern Cairn India Ltd next week.
Anil Agarwal-led Vedanta India, which changed the name from Sesa Sterlite last month, is a promoter in Cairn India. It will acquire up to 100 million shares of the company from another promoter Twin Star Mauritius Holdings Ltd.
In a BSE filing, Vedanta India said it will acquire up to 5.33% stake, or 100,000,000 shares, of Cairn India from Twin Star Mauritius Holdings on 3 June 2015, or within a period of 90 days for ₹ 220.40 per share.
After the acquisition of the shares, Vedanta India’s stake in Cairn India will grow from 18.73% to 24.06%, said the filing on Wednesday. Twin Star Mauritius Holdings held 39.41% stake in Cairn India as of March 2015.
In the past Agarwal has pointed towards plans to merge cash-cows Cairn India and Hindustan Zinc Ltd into his flagship Vedanta group firm to create a global natural resources giant to rival the likes of Rio Tinto or BHP Billiton Ltd.
Vedanta Group has appointed consultants to explore if it would make sense to merge the two firms into Sesa Sterlite, now called Vedanta India.
Shares of Cairn India rose 0.16% to ₹ 190.90 per share on BSE. Shares of Vedanta rose 2.53% to ₹ 196.90 apiece at the BSE.
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