Cairn India merges with Vedanta
May 8, 2017 12:19 pm
May 8, 2017 12:19 pm
Cairn India has announced merger with Vedanta Ltd, the two companies controlled by billionaire Anil Agarwal.
“This merger consolidates Vedanta’s position as one of the world’s largest diversified natural resources companies, with world-class, low-cost assets in metals & mining and oil & gas,” the companies said in a joint statement.
The merged company will have a larger pro forma market cap of $15.6 bn, and higher free float of 49.9 per cent. As per the statement, Vedanta will have one of the strongest balance sheets in the Indian corporate sector with flexibility to balance capital allocation to the highest return projects while providing a strong and stable dividend.
Sudhir Mathur, Acting CEO of Cairn India said, “The merger with Vedanta Ltd will de-risk Cairn India by providing access to a portfolio of diversified Tier-I, low cost, long-life assets, to deliver significant near term growth, while retaining the substantial upside from our oil and gas business.”
Tom Albanese, CEO of Vedanta Limited said, “Our continued focus to remain a low-cost operator with low leverage will provide us the financial flexibility throughout the cycle and help us create long term value for all stakeholders. This merger will increase the appeal of Vedanta Ltd to global investors as it simplifies the structure and increases the size and free float of the company.”
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