Mumbai: Cairn India Holdings Ltd, a unit of metals and mining firm Vedanta Resources Plc, has acquired a controlling equity stake in Japanese company AvanStrate Inc. for $158 million, Vedanta said on Wednesday.

AvanStrate Inc. is a liquid crystal display glass substrate maker in which Carlyle Group Lp holds a majority stake.

“Cairn acquired approximately $151 million in existing AvanStrate debt with a face value of $299 million from banks. It also acquired a 51% equity stake in AvanStrate from Carlyle Group. Cairn also extended a $7 million loan to AvanStrate," Vedanta Resources said in a press statement.

For the year ended March, AvanStrate’s earning before interest, tax, depreciation and amortisation (Ebitda) was at $75 million on revenue of $169 million.

Vedanta, on the other hand, generated Ebitda of $3.19 billion on revenue of $11.52 billion.

Vedanta Resources said the transaction will provide Cairn with strategic control and attractive returns.

Approval from existing lenders is expected by the end of 2017, the company added.

Given Vedanta Resources’ focus on providing basic materials for the development of emerging markets, the company said, the transaction provides it with avenues to source material for technology application.

“AvanStrate is particularly focused on supplying glass substrate to small and medium sized TFT LCD (thin-film-transistor liquid-crystal display) panels, used in many mobile devices, and India has significant market potential for such devices," said Vedanta.

TFT LCD is a variant of LCD that uses TFT technology for improving image qualities and contrast.

As of 8pm IST, Vedanta Resource Plc’s stock was trading at £793.50, up 1.34% on the London Stock Exchange.