RBI approval left for Cairn-Vedanta merger; shares gain
Cairn, in a BSE filing on Tuesday said, The company has now received all the required approvals in relation to the scheme of arrangement between Vedanta Limited and Cairn India and their respective shareholders and creditors (Scheme), save and except the approval of RBI for issuance of redeemable preference shares to the non-resident shareholders of Cairn India.
Vedanta Limited - Cairn India merger has received all required approvals and now only awaits Reserve Bank of India's (RBIs) nod.
Cairn, in a BSE filing on Tuesday said, "The company has now received all the required approvals in relation to the scheme of arrangement between Vedanta Limited and Cairn India and their respective shareholders and creditors ('Scheme'), save and except the approval of RBI for issuance of redeemable preference shares to the non-resident shareholders of Cairn India."
Shares of Cairn and Vedanta gained after the announcement.
At 1237 hours, Cairn shares were trading at Rs 295.20 per piece, up 1.17%; while Vedanta shares were up 1.28%, trading at Rs 264.50 per piece.
The deal was first announced on 14 June 2015. However, in the month of July 2016, the terms and conditions of the merger were revised.
As per the scheme, Cairn India's minority shareholder will get one equity share in Vedanta and four redeemable preference shares with a face value of Rs 10, at a coupon rate of 7.5% and tenure of 18 months from issuance.
This merger will give Vedanta access to oil and gas explorer Cairn India`s $3.5 billion cash pile.
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