London, Aug 6 (IANS) Mining and energy major Vedanta Resources plc Chairman Anil Agarwal has said the group aims to complete the merger between Cairn India and Vedanta Ltd in the current fiscal (FY17).
“One of our strategic objectives is to simplify the group structure for optimum returns for shareholders, and in July we announced new terms for the Cairn India-Vedanta Ltd merger,” Agarwal told shareholders here.
“This transaction is a win-win for all shareholders, and we aim to complete it this financial year,” he said.
Taking into account prevailing market conditions, Vedanta Ltd, Cairn India Ltd and Vedanta Resources plc made public on July 22 the revised and final terms of the recommended merger which was announced on June 14 last year.
Following the completion of the transaction, Vedanta plc ownership in Vedanta Ltd is expected to decrease to 50.1 per cent from its current 62.9 per cent shareholding. Cairn India minority shareholders will own 20.2 per cent and Vedanta Ltd minority shareholders will own a 29.7 per cent stake in the enlarged entity.
“The strategic rationale for merging Vedanta Ltd and Cairn India remains highly compelling,” said Vedanta Ltd’s CEO Tom Albanese.
“The Transaction consolidates our portfolio of attractive Tier-I assets and simplifies the group structure, better positioning the group to deliver superior value to all shareholders over the longer term,” he said earlier.