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Vedanta shareholders approve Cairn merger
Vedanta has announced its shareholders, secured and unsecured creditors had approved Cairn India’s merger with it under a revised scheme. Of the members present and voting at an extraordinary general meeting of Vedanta shareholders in Panaji on Thursday, 97.84 per cent in number and representing 99.99 per cent in value voted in favour approving the scheme. Further, secured and unsecured creditors, at their respective meetings, also approved the scheme with the requisite majority, the company said.
Cairn India will hold its extraordinary general meeting on Monday. Earlier this week, shareholders of Vedanta Resources had approved the merger. The scheme has now been approved by a majority of Vedanta’s minority shareholders. Vedanta sought approval of shareholders by way of a special resolution at the extraordinary general meeting for reduction of the company’s capital. This resolution was also approved by the shareholders who cast 99.97 per cent of votes (in value) in its favour. The scheme is now subject to approval of the jurisdictional high courts and other regulatory approvals.
On July 22, 2016, Vedanta and Cairn India announced a revised deal in which Vedanta offered 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 and tenure of 18 months. The minority shareholders of Cairn India will hold a 20.2 per cent stake in the merged entity, while Vedanta Plc’s ownership will be 50.1 per cent and the remaining 29.7 per cent will be owned by Vedanta’s minority shareholders. Dan Fouts Jersey
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