Cairn India, Vedanta boards to meet amid merger speculation

Vedanta signaled it was considering merging the two Indian units, as it tries to resolve a mismatch between its debt, held at the top of the group, and its cash.

By PTI | Jun 14, 2015, 04.22 AM IST

NEW DELHI: Cairn India has said its board of directors will meet on Sunday to deliberate on the proposed merger with Vedanta Ltd. In a BSE filing, Cairn India said: “A meeting of the board of directors of the company will be held on June 14, 2015, inter alia, to consider and evaluate amalgamation of the company with Vedanta Limited.”

Sources said the boards of the two companies will consider a ‘reverse’ merger aimed at cutting debt on Vedanta books as well as the share swap ratio and decide on the timelines for completion of the merger. Vedanta in 2011 acquired majority control of Cairn India for $8.67 billion. It holds 59.9% in the oil explorer through its various units as of March 31.

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