TIDMVED
RNS Number : 2287C
Vedanta Resources PLC
11 April 2017
Vedanta Resources plc
16 Berkeley Street
London W1J 8DZ
Tel: +44 (0) 20 7499 5900
Fax: +44 (0) 20 7491 8440
www.vedantaresources.com
11 April 2017
Vedanta Resources plc
Vedanta Limited - Cairn India Merger Effective
Vedanta Resources plc's subsidiary Vedanta Limited and Cairn
India Limited today made the below announcement.
VEDANTA - CAIRN MERGER EFFECTIVE
Vedanta Limited ("Vedanta") and Cairn India Limited ("Cairn
India") today announced that the merger of Cairn India with Vedanta
pursuant to the Scheme of Arrangement has become effective.
Vedanta is ranked #6 (1) among the global diversified natural
resources companies, and the only one with majority of its sales to
the growing Indian market. 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 merged company will have a
larger pro forma market cap of $15.6 bn (2) , and higher free float
of 49.9%. Vedanta will have one of the strongest balance sheets in
the Indian corporate sector with flexibility to balance capital
allocation to the highest return projects while providing a strong
and stable dividend.
Vedanta is India's premier natural resources company, providing
the metals and energy to build India and fuel its growth. The
combined entity is uniquely positioned to unlock India's wealth of
world-class energy and mineral resources. The merged company is
committed to enhancing oil & gas production, and preserving the
"Cairn" brand.
Navin Agarwal, Chairman of Vedanta Limited said:
"We are pleased to have completed the Vedanta Ltd - Cairn India
merger and are very excited about the future of the combined
company. I would like to thank the shareholders of both companies
for their support for this transaction and welcome the Cairn India
shareholders into Vedanta Ltd's shareholder register. With world
class assets in Metals & Mining and Oil & Gas, Vedanta will
fuel India's economic growth and generate value for all
stakeholders."
Sudhir Mathur, Acting CEO of Cairn India said:
"I am very excited about Vedanta's commitment to grow our Oil
& Gas business. The merger with Vedanta Ltd will de-risk Cairn
India by providing access to a portfolio of diversified
Tier-I, low cost, long-life assets, to deliver significant near
term growth, while retaining the substantial upside from our oil
& gas business."
Tom Albanese, CEO of Vedanta Limited said:
"Our continued focus to remain a low-cost operator with low
leverage will provide us the financial flexibility throughout the
cycle and help us create long term value for all stakeholders. This
merger will increase the appeal of Vedanta Ltd to global investors
as it simplifies the structure and increases the size and free
float of the company."
Thursday 27 April, 2017 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 as per
terms of the Scheme. Shareholders of Cairn India will receive for
each equity share held:
-- 1 (One) equity share in Vedanta of face value INR 1 each
-- 4 (Four) 7.5% Redeemable Preference Share ("RPS") in Vedanta
with a face value of INR 10 each
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.
Vedanta will arrange for a third-party facility enabling a cash
exit for RPS holders at par within 30 days from issuance.
(1) Based on CY 2016 reported EBITDA of diversified natural resources companies globally
(2) Based on pro-forma shares outstanding post the merger and
closing market price as on April 10, 2017
For further information, please contact:
Communications Finsbury
Roma Balwani Daniela Fleischmann
President - Group Sustainability Tel: +44 20 7251 3801
and Communications
Tel: +91 22 6646 1000
gc@vedanta.co.in
Investors
Ashwin Bajaj Tel: +44 20 7659 4732
Director - Investor Relations Tel: +91 22 6646 1531
ir@vedanta.co.in
Radhika Arora
Associate General Manager
- Investor Relations
Sunila Martis
Associate General Manager
- Investor Relations
About Vedanta Resources
Vedanta Resources plc ("Vedanta") is a London listed diversified
global natural resources company. The group produces aluminium,
copper, zinc, lead, silver, iron ore, oil & gas and commercial
energy. Vedanta has operations in India, Zambia, Namibia, South
Africa, Ireland, Liberia and Australia. With an empowered talent
pool globally, Vedanta places strong emphasis on partnering with
all its stakeholders based on the core values of trust,
sustainability, growth, entrepreneurship, integrity, respect and
care. For more information, please visit
www.vedantaresources.com.
Disclaimer
This press release contains "forward-looking statements" - that
is, statements related to future, not past, events. In this
context, forward-looking statements often address our expected
future business and financial performance, and often contain words
such as "expects," "anticipates," "intends," "plans," "believes,"
"seeks," "should" or "will." Forward-looking statements by their
nature address matters that are, to different degrees, uncertain.
For us, uncertainties arise from the behaviour of financial and
metals markets including the London Metal Exchange, fluctuations in
interest and/or exchange rates and metal prices; from future
integration of acquired businesses; and from numerous other matters
of national, regional and global scale, including those of a
political, economic, business, competitive or regulatory nature.
These uncertainties may cause our actual future results to be
materially different that those expressed in our forward-looking
statements. We do not undertake to update our forward-looking
statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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