Vedanta-Cairn merger gets shareholders nod
It said in the statement,"Vedanta Resources plc announces that at its General Meeting held today, Tuesday 6 September, the resolution put to shareholders in relation to the proposed merger of Vedanta Limited and Cairn India Limited (the "Merger") was duly passed on a poll."
Vedanta Resources PLC on Tuesday, cleared the deck with majority of shareholders approving the merger of group firms Vedanta Limited and Cairn India.
It said in the statement,"Vedanta Resources plc announces that at its General Meeting held today, Tuesday 6 September, the resolution put to shareholders in relation to the proposed merger of Vedanta Limited and Cairn India Limited (the "Merger") was duly passed on a poll."
The group recieved 225,984,316 votes favouring the merger, while a small group of 1,174 vote against it.
Both Vedanta and Cairn on July 22, had revised the terms and conditions of the merger.
As per the revised terms, Vedanta Limited will include Vedanta shareholders having 79.8% shares and Cairn India shareholders to have 20.2%.Vedanta plc pro-forma will have ownership of 50.1% in Vedanta Ltd.
The Transaction offers significant benefits for Cairn India shareholders such as de-risked earnings, stable cash flows supporting investment, dividends through the cycle and driving long term value.
Further, it will also have exposure to Vedanta Limited’s world class metals and mining assets and delivering strong growth through production ramp ups.
The revised and final terms include each of Cairn India minority shareholder will receive for each equity share held 1 equity share in Vedanta Ltd and in addition 4 Redeemable Preference Shares with a face value of Rs 10 in Vedanta Ltd, with a coupon of 7.5% and tenure of 18 months from issuance. Implied premium of 20% to one month VWAP of Cairn India share price.
It further said that the Jurisdictional High Courts have convened the shareholder meetings for each of Vedanta Ltd and Cairn India on 8 September 2016 and 12 September 2016, respectively. The Notice convening the shareholder meetings will be sent to shareholders in due course.
The deal was first announce on 14 June 2015.
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10:48 PM IST