 "Cairn India, Vedanta hit 52-week high")
Shares of Cairn India and Vedanta have hit their respective 52-week highs after the boards of these companies approved the revised and final terms for the merger.
Cairn India has surged 8% to Rs 207, bouncing back 11% from its early morning low of Rs 187 on the BSE. Vedanta was up nearly 4% to Rs 175, recovering 7% from its intra-day low of Rs 163 on back of two-fold jump in trading volumes.
Pursuant to the revised and final terms, each Cairn India minority shareholder will receive for each equity share held, one equity share in Vedanta and four redeemable preference shares with a face value of Rs 10 in Vedanta.
Sudhir Mathur, CFO and Acting CEO of Cairn India, said “Cairn India shareholders will benefit from exposure to a diversified portfolio of world-class, low cost, long-life assets with significant growth. We are confident that the financial strength and diversified portfolio of Tier-I assets will provide de-risked earnings and stable cash flows, driving long-term value.”
Tom Albanese, CEO of Vedanta, said “The strategic rationale for merging Vedanta and Cairn India remains highly compelling. Diversified resources companies have delivered superior returns for shareholders historically. The transaction consolidates our portfolio of attractive Tier-I assets and simplifies the group structure, better positioning the group to deliver superior value to all shareholders over the longer term.”
Cairn India has surged 8% to Rs 207, bouncing back 11% from its early morning low of Rs 187 on the BSE. Vedanta was up nearly 4% to Rs 175, recovering 7% from its intra-day low of Rs 163 on back of two-fold jump in trading volumes.
Pursuant to the revised and final terms, each Cairn India minority shareholder will receive for each equity share held, one equity share in Vedanta and four redeemable preference shares with a face value of Rs 10 in Vedanta.
Sudhir Mathur, CFO and Acting CEO of Cairn India, said “Cairn India shareholders will benefit from exposure to a diversified portfolio of world-class, low cost, long-life assets with significant growth. We are confident that the financial strength and diversified portfolio of Tier-I assets will provide de-risked earnings and stable cash flows, driving long-term value.”
Tom Albanese, CEO of Vedanta, said “The strategic rationale for merging Vedanta and Cairn India remains highly compelling. Diversified resources companies have delivered superior returns for shareholders historically. The transaction consolidates our portfolio of attractive Tier-I assets and simplifies the group structure, better positioning the group to deliver superior value to all shareholders over the longer term.”