London-listed Vedanta Group will buy between 51% and 60% of Cairn India for $8.5 billion to $9.6 billion. Vedanta Resources and Sesa Goa will acquire Cairn India shares from Cairn Energy for Rs355 $7.60 apiece. Vedanta will also pay Cairn Energy a non-compete of Rs50 per share.
Vedanta expects to ultimately own between 31% and 40% of Cairn India directly. Sesa Goa, a subsidiary of Vedanta and India’s largest private sector producer of iron ore, will hold up to 20%.
Cairn India has interests in 11 oil blocks in India and Sri Lanka. Its principal asset is a 70% stake in the Rajasthan oil development project, of which the first phase...
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