Vedanta CEO says merger with Cairn India to be concluded by March 2016
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India-based Vedanta (BOM: 500295) said it is confident of completing its merger deal with subsidiary Cairn India (BOM: 532792) by March 2016, The Economic Times reported, citing a prior report in the Press Trust of India.
Tom Albanese, Vedanta's CEO, was cited as saying that Vedanta anticipates the merger agreement with Cairn India to be transacted on schedule, by March of next year.
Vedanta recently announced a merger deal with Cairn India, in which each shareholder in Cairn India will be offered one equity share in Vedanta, in addition to a 7.5% redeemable preference share with INR 10 face value for each share in Cairn. Cairn India has INR 168.67bn (USD 2.63bn) of cash on its books, while Vedanta has a debt of INR 376.36bn, earlier reports noted.
It was previously reported that Life Insurance Corporation of India (LIC), an Indian insurer and minority stakeholder in Cairn India, is still examining the merger proposal and would reach a final judgment soon.