Panaji, July 11:
Listing the positives of the proposed merger of Cairn India with his Vedanta Ltd, its chairman Naveen Agarwal said that the move would not only strengthen the company’s cash-flows but also allow Cairn India’s shareholders to get access to Vedanta’s well invested metals and mining assets which have low cost and long life.
“Cairn India’s shareholders will get access to Vedanta Limited’s tier I metals and mining assets, which are well-invested, have low cost and long life. Vedanta’s focus on improving returns from core, existing operations in order to unlock value will benefit Cairn India and its shareholders,” Agarwal said, adding that the proposed merger would also strengthen the company’s cash flows, reduce earnings volatility due to diversified revenue streams, reduce procurement and lower funding costs.
He also said that the merger will deliver significant economies of scale, including improved optionality to allocate capital, and will also strengthen their engagement with the government and sustainability initiatives.
“We are committed to sustaining and enhancing the Cairn India brand and maximizing its potential. Furthermore, the merger will provide more liquidity to the shareholders of the merged entity with a higher free float,” he said. (IANS)