Vedanta Ltd., India’s largest private miner, has offered to buy out minority shareholders in energy unit Cairn India, in a deal worth about US$2.3 billion.
Under the offer, Cairn India shareholders will get one share of Vedanta for every share held in Cairn, the companies said in a joint statement on Sunday.
The shareholders will also get one redeemable preference share in Vedanta with a face value of 10 rupees. That implies a premium of 7.3 percent to Cairn’s Friday close and a ratio of 1.04 for 1, Reuters reported.
The deal, expected to close in the first quarter of 2016, will move Vedanta closer to its goal of being a major diversified player.
Vedanta Resource Plc, controlled by tycoon Anil Agarwal, currently holds a majority interest in Mumbai-listed Vedanta Ltd, which in turn holds a 59.88 percent stake in Cairn India.
Cairn’s largest minority holder is former owner Cairn Energy Plc.
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