By OGJ editors
HOUSTON, July 12 -- Cairn Energy PLC said it has completed the sale of a minority stake in subsidiary Cairn India to the mining conglomerate Vedanta Resources, which is trying to acquire a majority interest.
Cairn sold a 10% interest in Cairn India to Vedanta for $1.362 billion. Vedanta, London, last year offered to buy as much as 60% of the Indian company for $9.6 billion and earlier bought a 10.4% stake from Petronas (OGJ, Apr. 25, 2011, Newsletter).
Approval by the Indian government of Vedanta’s takeover of Cairn India has been complicated by a royalty dispute. Last month the government announced conditional approval, but the companies haven’t accepted the conditions (OGJ Online, July 1, 2011).
In its July 12 announcement about sale of the minority interest, Cairn energy said sale of a further 30% stake “remains subject to the necessary consents and approvals from the government of India.”
Cairn Energy now owns 52.2% of Cairn India. Vedanta holds 28.5%.