Vedanta-Cairn Merger

Vedanta's plan to demerge its businesses into separate entities could face hurdles from its minority shareholders and creditors, according to a report. On September 29, the mining conglomerate announced plans to demerge five of its key businesses, including aluminium, oil and gas, and steel, into separate listed entities. "We maintain our view that VEDL's (Vedanta Ltd's) planned demerger of its other businesses could face major hurdles from minority shareholders and/or creditors, which may delay or derail the deal. There have been few updates on the demerger progress ever since it was announced in September 2023," Credit Sights, a FitchSolutions Company, said in its latest report. The report further said it will be a challenge for Hindustan Zinc Ltd (HZL) -- a Vedanta Group company -- to proceed with its proposed demerger as the company will be "unsuccessful" in getting the required 75 per cent shareholders' approval. Vedanta and the Centre, which owns a 29.5 per cent stake in HZL,

Cairn Oil & Gas, a unit of Vedanta Ltd, on Tuesday announced the appointment of Prachur Sah as its Deputy Chief Executive Officer. Prachur Sah earlier held the role of Director - New Ventures and spearheaded the company's expansion efforts under the Open Acreage Licensing Policy (OALP) rounds, the company said in a statement. Prachur brings over two decades of rich experience in the energy sector and joined Cairn Oil & Gas in 2018 from Schlumberger where he was the Managing Director India & Bangladesh. An alumni of IIT Bombay, he has worked in several countries including South Asia, Middle East and Latin America and brings with him a deep understanding and experience of the oil and gas business. "In his new role, Prachur will lead the next phase of growth for Cairn towards delivering volumes, cost, growth projects, rewards and recognition and early monetisation (new blocks)," it said. He will be supported by the Management Committee of Cairn Oil & Gas comprising of ...

Cairn India currently contributes to 27% of the country's overall oil output

Cairn Energy will have a 5% holding in Vedanta after the merger of Cairn India

Analysts claim the merged entity would be debt-laden and low on cash

Deal gets approval of over 92% of Cairn's shareholders

Requiring support of at least half of the 40% minority shareholders of Cairn India, deal got 72.43% of minority votes

SES recommended against citing lack of transparency, IiAS asked shareholders to vote for the move citing various benefits

For the merger to go through, half of the minority shareholders, who together make up for 40% of the Cairn equity, have to approve the deal

He said merger of India's biggest private oil producer with country's top producer of aluminum and copper will give India 'a natural resources company of its own'

Despite the sweetened offer to Cairn's minority shareholders, Vedanta stands to benefit more from the merger

For each equity share a minority investor holds in Cairn India, he'll get one equity share and four redeemable pref shares in Vedanta

Anil Agarwal-promoted Vedanta Group had acquired Cairn India from its British promoters, Cairn Energy Plc, in 2011

The likely merger between group companies Vedanta (erstwhile Sesa Sterlite) and Cairn India, expected to be announced on Sunday, June 14th, will test the power of minority shareholders more than any other case so far.