Board of Cairn India approves revised terms for scheme of merger with Vedanta

At meeting held on 22 July 2016

The Board of Directors (Board) of Cairn India (Cairn or the Company) at its meeting held on 14 June 2015 had approved a Scheme of Arrangement involving merger of Cairn with Vedanta (Vedanta), subject to requisite statutory and regulatory approvals.

Further to the above approval, the Board of the Company, in their meeting held on 22 July 2016 has approved the revision of terms, appointed date and accounting treatment.

Pursuant to the revised and final terms, each Cairn India minority shareholder will receive for each equity share held:

- 1 equity share in Vedanta Limited; and
- 4 Redeemable Preference Shares with a face value of INR 10 in Vedanta, with a coupon of 7.5% and tenure of 18 months from issuance.
- Implied premium of 20% to one month VWAP of Cairn India share price.

Following completion of the Transaction:
- Vedanta plc ownership in Vedanta Limited is expected to decrease to 50.1% from its current 62.9% shareholding.
- Cairn India minority shareholders will own 20.2% and Vedanta minority shareholders will own a 29.7% stake in the enlarged entity.

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