Vedanta, Cairn India gain up to 4% as promoter receives shareholders' approval for merger

NEW DELHI: Shares of Vedanta and Cairn India jumped up to 4 per cent in Wednesday’s trade after promoter Vedanta Resources said its shareholders had approved merger of the two group companies.

In a filing to the London Stock Exchange, Vedanta Resources said the resolution put to shareholders in relation to the proposed merger of Vedanta and Cairn India was duly passed in a poll, adding that the company would now hold a meeting of its shareholders and secured and unsecured creditors on Thursday to seek approval for the merger with Cairn India.

Following the development, shares of BSE-listed Vedanta jumped 3.79 per cent to hit a fresh 52-week high of Rs 180.70. Cairn India, on the other hand, jumped 3.02 per cent to hit a high of Rs 209.20. This was not far from its 52-week high level of Rs 212.60 hit in August.

Meanwhile, Cairn India has called a shareholders' meeting on Monday to seek approval for the company's takeover by its parent under a revised all-share deal. Under the new deal, Vedanta group will give minority shareholders of Cairn India one equity share and four redeemable preference shares with a face value of Rs 10 each.

The preference shares will carry a coupon of 7.5 per cent on tenure of 18 months.