Vedanta to buy out minority shareholders in Cairn India
MUMBAI (Reuters) - India's largest private miner Vedanta Ltd has offered to buy out minority shareholders in cash-rich oil and gas unit Cairn India, a move that will streamline debt-burdened parent Vedanta Resources Plc's operating structure.
Shareholders in Cairn India, India's top private oil producer, will get one share in Vedanta Ltd for every held, the companies said in a joint statement after their boards approved the transaction on Sunday. They will also get one redeemable preference share in Vedanta Limited.
Debt-burdened Vedanta began simplifying its byzantine structure with a 2012 overhaul, but further moves to simplify the group and buy out minorities in cash-rich subsidiaries have long been awaited by the market. Cairn India has a $2.6 billion cash pile.
(Reporting by Aman Shah; Writing by Sumeet Chatterjee; Editing by Clara Ferreira Marques)