Vedanta sweetens Cairn merger deal; makes 1+4 offer for shareholders
In an attempt to salvage the merger of cash-rich oil firm Cairn India with its debt-laden parent Vedanta Ltd, the company on Friday sweetened the deal by offering three additional preference shares in hope of winning over minority shareholders like Life Insurance Corporation of India (LIC).
Vedanta on Friday offered minority shareholders of Cairn India one equity share and four redeemable-preference shares with a face value of Rs 10 each. The preference shares will carry a coupon of 7.5% and tenure of 18 months.
"Each Cairn India minority shareholder will receive for each equity share held one equity share in Vedanta Ltd and four 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," the company said in a statement to the BSE.
Life Insurance Corp of India (LIC) and Cairn Energy Plc of UK are the biggest among the minority shareholders in Cairn India.
For the merger to go through, half of the minority shareholders, who together make up for 40% of the Cairn equity, have to approve the deal, the news agency said.
"Cairn India shareholders will benefit from exposure to a diversified portfolio of world-class, low cost, long-life assets with significant growth," Cairn India chief financial officer and acting chief executive officer Sudhir Mathur said in a statement to the BSE.
We are confident that the financial strength and diversified portfolio of tier-I assets will provide de-risked earnings and stable cash flows, driving long-term value, Mathur added.
Watch the full news video report here-
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
03:12 PM IST