Mumbai: Global metals and mining major Vedanta Group on Monday said it will acquire 51 per cent to 60 per cent of oil producer Cairn India in a deal worth $ 8.5-9.6 billion.
The all-cash deal will see Vedanta Resources Plc hold a 31 per cent to 40 per cent stake in Cairn India directly, while its Indian subsidiary Sesa Goa will control 20 per cent, the mining company said in a statement to the London Stock Exchange.
Vedanta will acquire these shares from Cairn India's Edinburgh-based parent company, Cairn Energy, for Rs 355 per share and also pay a non-compete fee of Rs 50 per share.
"The proposed acquisition significantly enhances Vedanta's position as a natural resources champion in India. Cairn India's Rajasthan asset is world class in terms of scale and cost, delivering strong and growing cash flow," said Anil Agarwal, executive chairman of the London-listed Vedanta.
Cairn India, the subsidiary of the Edinburgh based Cairn Energy, touched an all-time high of Rs 368, up 3.5 per cent from its previous close. It later slipped on profit booking.
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