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Vedanta gets formal approval for Cairn India deal

Vedanta gets formal approval for Cairn India deal
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First Published: Mon, Aug 01 2011. 04 28 PM IST
Updated: Mon, Aug 01 2011. 04 28 PM IST
London: UK-listed miner Vedanta Resources confirmed on Monday that it has received conditional approval from the Indian government for its acquisition of a stake in Cairn India , subject to conditions on royalty payments and regulatory go-aheads.
Conditions on the long-delayed sale include an undertaking from Cairn India that it and state-controlled ONGC will share the burden of royalty payments which are currently only paid by ONGC.
“Vedanta is working with Cairn Energy to satisfy these conditions and complete this transaction,” the miner said.
“Vedanta notes that Cairn India plans to seek a shareholder approval for the conditions imposed by the government of India.”
A source at Cairn India said the process of getting approval through a ballot would start immediately and should be completed in a month. Analysts expect Cairn India shareholders to approve the conditions.
Cairn India’s annual shareholder meeting is set for 18 August.
Vedanta officials indicated last week they expected the deal to complete within six weeks to two months.
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First Published: Mon, Aug 01 2011. 04 28 PM IST
More Topics: Vedanta | ONGC | PSC | Cairn | Stake Sale |