Vedanta takeover of Cairn India takes step

By OGJ editors
HOUSTON, Apr. 7
-- Vedanta Resources PLC, London, has received approval by India’s securities regulator to start an open offer for up to 20% of Cairn India, for which it has a conditional agreement to buy a majority stake for up to $9.6 billion (OGJ, Aug. 23, 2010, p. 26).

The Securities and Exchange Bureau of India approved an open offer to Cairn India’s minority shareholders, which must be completed before the takeover can progress.

A Vedanta Indian subsidiary, Sesa Goa Ltd., will make the open offer.

The agreed acquisition of as much as 51% of Cairn India shares by Vedanta, a mining conglomerate, from Cairn Energy, Edinburgh, awaits approval by the Indian government.

Approval has been complicated by a dispute over royalties paid by state-owned Oil & Natural Gas Corp. on production in a project in Rajasthan operated by Cairn India. ONGC owns a 30% interest in the project.

Cairn Energy and Vedanta have extended a deadline for completion of all conditions in the transaction to May 20.

At completion of the sale to Vedanta, Cairn Energy will hold an interest in the fully diluted share capital of Cairn India of 10.6-21.6%.

Related Articles

Earnings, revenues down for OGJ150 in 2013; liquids output, reserves up

09/01/2014 The combined earnings of the OGJ150 group declined 3.03% during 2013 to $88.1 billion. The group's revenues for the year were also down 7.32% from ...

OGJ100 group posts lower 2013 earnings

09/01/2014 Oil & Gas Journal's survey of the 100 leading oil and gas producing firms based outside the US reveals that 2013 net income and revenues fell m...

Utah's crude transportation options include Uinta Express project

09/01/2014 Utah's crude oil transportation options-which include Tesoro Refining & Marketing Co. LLC's proposed Uinta Express Pipeline-typify the broader ...

AMP acquires additional midstream assets in Eagle Ford

09/01/2014 American Midstream Partners LP (AMP) has opted to use, and has received approval of, its right-of-first-offer to acquire the Gonzales County, Tex.,...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected