LONDON (Alliance News) - Indian miner Vedanta Resources PLC on Friday said it has agreed revised merger terms for its Vedanta Ltd and Cairn India subsidiaries.
Vedanta first announced plans to merge the two subsidiaries in June 2015. Following completion of the deal, and in line with the previous agreement, Vedanta Resources' holding in Vedanta Ltd will fall to 50.1% from 62.9%. Minority shareholders in Cairn India will own 20.2% of the combined company, with the balance owned by minority shareholders in Vedanta Ltd.
Under the terms of the final agreement, Cairn India minority shareholders will get 1 Vedanta Ltd share and 4 redeemable preference shares in Vedanta Ltd.
"I am pleased that the boards of Cairn India and Vedanta Ltd have approved the terms announced today. The simplified corporate structure will better align interests between all shareholders for the creation of long-term sustainable value," said Anil Agarwal, Vedanta Resources' chairman.
Shares in Vedanta were up 4.2% to 542.00p on Friday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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