Cairn India merges with Vedanta

NEW DELHI: The merger of Cairn India with Vedanta has been completed, the two companies controlled by billionaire Anil Agarwal, have said.

"This merger consolidates Vedanta’s position as one of the world’s largest diversified natural resources companies, with world-class, low-cost assets in metals & mining and oil & gas," the companies said in a joint statement.

The merged entity will have a pro forma market cap of $15.6 billion, as per the statement. The merged company would preserve the "Cairn" brand, the two companies said. April 27 has been fixed as the record date for determining the list of the shareholders of Cairn India to whom the equity and preference shares of Vedanta will be allotted.

Investors will receive for each equity share held in Cairn India one equity share, and four redeemable Preference Shares in Vedanta. Cairn India shareholders as on said Record Date, who will become shareholders of Vedanta, would also receive an interim dividend of Rs. 17.70 per equity share as approved by the board of Vedanta on 30 March 2017.

No shares will be issued to Vedanta or any of its subsidiaries for their shareholding in Cairn India. Separately, Cairn India said its average gross production declined by 7 per cent in 2016-17 due to natural decline in the fields and planned maintenance shutdown in Rajasthan. Production at Rajasthan declined 5%.