New Delhi, May 28:
Natural resources major Vedanta India has announced it will acquire up to 5.33 percent stake worth over Rs.2,200 crore in its group company Cairn India from Twin Star Mauritius Holdings next week.
The Anil Agarwal-led Vedanta India said it will acquire the stake of up to 100,000,000 shares of Cairn India on June 3, 2015, or within a period of 90 days for Rs.220.40 per share.
Twin Star Mauritius Holdings held 39.41 percent stake in Cairn India as in March 2015.
After the acquisition, Vedanta India’s stake in Cairn India will grow from 18.73 percent to 24.06 percent, the company said in a stock exchange filing on Wednesday.
Vedanta Group has appointed consultants to explore if it would make sense to merge the two firms into Sesa Sterlite, now called Vedanta India.
Last month, Sesa Sterlite changed its name to Vedanta Ltd. to better align with identity of its international parent entity Vedanta Resources.
Sesa Sterlite is a subsidiary of the London Stock Exchange-listed Vedanta Resources, which holds 59.53 percent stake in the Indian firm.
The company, however, said the change in name will have no impact on the operations of Vedanta’s other subsidiaries – Cairn India, Hindustan Zinc and BALCO.
“The name change from Sesa Sterlite to Vedanta Ltd. promises a united and aligned identity, Vedanta, which positions us to create greater value for our domestic and global stakeholders, as a diversified natural resources group of companies,” Vedanta Group chief executive Tom Albanese said in a statement.
At 3 p.m. on Thursday, Vedanta stock was trading at Rs.195.55 a share, up 3.50 points, or 1.82 percent, over its previous close on the Bombay Stock Exchange (BSE). (IANS)