Cairn says in process of securing govt approvals

LONDOAN: Edinburgh-based Cairn Energy Plc on Thursday said it is in the process of securing "necessary consents and approvals" from the Indian government for the sale of majority stake in its Indian unit to Vedanta Resources.

"Cairn continues to work with the Government of India to secure the necessary consents and approvals for completion of the proposed transaction with Vedanta," the company said in a statement here.

The company is selling up to 51 per cent of its 62.38 per cent stake in Cairn India to billionaire Anil Agarwal-run Vedanta Resources for $8.48 billion.

Cairn said its shareholders had approved the sale at a meeting on October 7 and Vedanta would seek its shareholders consent for the transaction by November end.

"It is expected that Vedanta's General Meeting will be held on or before November 30," it said.

Cairn had previously said that shareholder approvals of the company company must come in by October end.

Company chief executive Bill Gammell said: "The Vedanta transaction continues to progress as we work with the Government of India in a consensual manner to secure the necessary consents and approvals for completion."

The Mangala field in the prolific Rajasthan block, which is at the heart of Cairn's Vedanta deal, is currently producing 125,000 barrels per day.