Vedanta, Cairn India Approve Revised Merger Terms - Quick Facts

(RTTNews) - Vedanta Limited, Cairn India Limited (CAIRN) and India-focused miner Vedanta Resources plc (VED.L) have announced revised and final terms to the recommended merger between Vedanta Limited and Cairn India, that was announced on 14 June 2015.

Under the revised and final terms, each Cairn India minority shareholder will receive for each equity share held - one equity share in Vedanta Limited, and four redeemable preference shares with a face value of Indian Rupees or INR 10 in Vedanta Limited, with a coupon of 7.5 percent and tenure of 18 months from issuance. The revised offer prices has an implied premium of 20 percent to one month VWAP of Cairn India share price.

The companies noted that the recent commodity price environment has further strengthened the rationale of the transaction.

Following completion of the transaction, Vedanta plc ownership in Vedanta Limited is expected to decrease to 50.1 percent from its current 62.9 percent shareholding. Cairn India minority shareholders will own 20.2 percent and Vedanta Limited minority shareholders will own a 29.7 percent stake in the enlarged entity.