In a move that removes the last major hurdle in the Cairn-Vedanta merger, an overwhelming majority of Cairn India's shareholders on Monday voted in favour of the company's merger with its parent, Vedanta Limited.
In a court-convened meeting, 65.41 percent of shareholders present, representing 92.86 percent in shareholding value, voted in favour of the merger, Cairn India said in a stock exchange filing. The merger has also been approved by a majority of the minority shareholders, with 72.43 percent voting in favour of the resolution.
“I am very happy the shareholders of both the companies have approved the merger”, Anil Agarwal, group chairman of Vedanta Resources Plc told BloombergQuint in a telephone interview.
The merger is expected to be completed within this financial year. The company has received all regulatory approvals and awaits final approval from the two High Courts, Agarwal said.
Cairn-Vedanta intends to invest nearly Rs 10,000 crore ($1.5 billion) across its aluminium, copper and oil and gas businesses. Vedanta Limited will reduce debt by Rs 7,000 - 13,000 crore ($1-2 billion) in the next one to two years, Agarwal added.
The scheme is subject to the approval of the jurisdictional high courts and other regulatory approvals and is expected to be effective by the end of this financial year, according to the company's media statement.
“We are confident that the financial strength and diversified portfolio of Tier‐I assets of the merged company, with strong growth potential, will provide de‐risked earnings and stable cash flows and drive long‐term value,” Navin Agarwal, Chairman of Cairn India, said in the statement.
Also Read: Shareholder Drama At Cairn's Thinly-Attended, Court-Convened Meeting For Vedanta Merger
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