The equity shareholders of Cairn India Limited on Monday approved the merger of the company with its parent Vedanta Limited with requisite majority, paving the way for a creating a resource powerhouse.
“Of the members present and validly voting, 65.41% in number, representing 92.86% in value, voted in favour of the resolution approving the scheme,” said a company statement adding that the scheme has also been approved by a majority of the minority shareholders as the public shareholders of the company have casted 72.43% of votes (in value) in favour of the resolution.
Commenting on the transaction, Navin Agarwal, chairman of Cairn India, said, “I am pleased that the shareholders of Cairn India have approved the merger of Cairn India with Vedanta Limited. We are confident that the financial strength and diversified portfolio of Tier-I assets of the merged company, with strong growth potential, will provide de-risked earnings and stable cash flows and drive long-term value.”
The shareholders of Vedanta Limited had already approved of the merger scheme on Friday.
Tom Albanese, CEO of Vedanta Limited, said, “The approval for the Vedanta Limited and Cairn India merger by both sets of shareholders consolidates our portfolio of attractive, Tier-I assets and simplifies the group structure. We remain committed to delivering superior value for the shareholders of the merged company through our diversified portfolio of world-class, low cost, long-life assets that have significant growth potential.”
The merger scheme is now subject to the approval of the jurisdictional High Courts and other regulatory approvals and is expected to be effective by the end of this financial year.
Sudhir Mathur, CFO and Acting CEO of Cairn India, said, “The shareholders of Cairn India have approved the merger with Vedanta Limited, and I am confident that they will benefit from exposure to Vedanta’s diversified portfolio of assets while retaining the upside from Cairn’s strong oil & gas assets.”
