Vedanta meets all conditions for stake buy out: Cairn
December 7th, 2011 - 9:35 pm ICT by IANSMumbai, Dec 7 (IANS) Oil explorer Cairn Energy Wednesday said it will go ahead with the sale of 40 percent of its stake in the India subsidiary to Anil Agarwal-promoted Vedanta Group after completion of all regulatory conditions.
“Vedanta has confirmed that it has now satisfied the conditions under the sales and purchase agreement for the acquisition of a controlling shareholding in Cairn India,” Cairn India said in a regulatory filing to the Bombay Stock Exchange (BSE).
The company said it intended to return substantial proportion of the proceeds from the stake sale to shareholders.
“A further announcement in this respect will be made in due course,” it said.
After the deal, the company will retain an approximate 22 percent share in Cairn India.
The latest development came after the home ministry Tuesday gave its approval to the security no-objection certificate (NOC) to the deal.
The NOC was one of the conditions that the government had set for the Vedanta Group for buying the 40 percent stake in Cairn India from its parent company Cairn Energy Plc.
Both the companies had earlier agreed to other conditions of Cairn India paying cess and royalty on crude oil produced from its Rajasthan oilfields.
The transaction was delayed since August last year due to a disagreement between Cairn India and its partner, the state-owned Oil and Natural Gas Corp (ONGC), over royalty payments.
On Sep 28, ONGC gave its approval to Vedanta Group buying the India assets of Britain-based Cairn Energy, a deal worth about $9 billion.
ONGC’s approval comes almost two months after the government gave its nod to the transaction. Cairn has already sold 10 percent stake in the Indian subsidiary.
Cairn Energy became a major player in India’s energy space after its huge oil find in Barmer, Rajasthan, in 2007.
The average crude oil production from Mangala oilfield in the Barmer block is currently over 44,300 barrels per day (bpd) and is in the process of being ramped up to the plateau rate of 125,000 barrels.
The block is estimated to hold reserves of 6.5 billion barrels of energy equivalent.
- Vedanta buys out Cairn's India subsidiary - Dec 08, 2011
- ONGC approves Cairn-Vedanta deal - Sep 28, 2011
- Cairn Energy tells Indian arm to accept government terms - Aug 23, 2011
- India gives conditional approval to Cairn-Vedanta deal - Jun 30, 2011
- Vedanta to pick up majority stake in Cairn India (Lead) - Aug 16, 2010
- Vedanta enters oil prospecting with $8.5-$9.6 bn Cairn deal (Roundup) - Aug 16, 2010
- Supreme Court to hear PIL against Cairn-Vedanta deal - Feb 27, 2012
- Cairn extends deadline for wrapping up deal with Vedanta - May 19, 2011
- Cairn-Vedanta sale referred to CCEA for final decision: Reddy - May 27, 2011
- SC notice to government on plea against Cairn-Vedanta deal (Lead) - Apr 23, 2012
- Vedanta not to hike Cairn India offer price - Oct 11, 2010
- ONGC says its approval needed for Cairn-Vedanta deal - Oct 21, 2010
- ONGC's interest to be fully protected: Deora - Oct 27, 2010
- SC notice to government on plea against Cairn-Vedanta deal - Apr 23, 2012
- Group of Ministers to examine Cairn-Vedanta deal - Apr 06, 2011
Tags: bombay stock exchange, bpd, cairn energy, cairn india, cess, crude oil production, energy plc, home ministry, indian subsidiary, noc, objection certificate, oilfield, ongc, purchase agreement, rajasthan, regulatory conditions, royalty payments, shareholding, substantial proportion, vedanta group