Shares in Asia traded firm as the Japanese shares climbed to a fresh 7-month high. Shares of export-oriented firms rose as the Japanese yen fell to a nine-month low. Shares in Korea and Australia opened flat to negative with the mining sector trading weak. The sentiment improved after Germany was reported to be easing its opposition to a bigger European bailout fund.
Vedanta, Sesa Sterlite
Sesa Goa, the largest iron-ore exporter in India, will absorb Sterlite Industries India in an all-share deal. Investors will get three Sesa Goa shares for five shares of Sterlite. Vedanta will transfer its 38.8% holding in Cairn India, including a debt of $5.9 billion, to Sesa Sterlite, the new company that will hold 58.9 percent of Cairn India. Vedanta Aluminium, the Indian aluminum unit in which Vedanta owns a 70.5 percent stake, and Madras Aluminium will also be consolidated into the new company.
The impact
The stock market is expected to react negatively to the deal. While the deal clearly simplifies holding structure for the Vedanta group and reduces debt of $ 5.9bn, Sesa Goa dilutes equity significantly to consolidate assets. Analysts say that the stock market will react positively for Vedanta in London and Cairn India on local bourses. The impact on Sesa Goa would be negative as it is an acquirer of assets. Some analysts say Sesa Goa shares could fall 12-13 per cent on Monday.
NMDC
State-owned NMDC will soon appoint three different agencies to conduct due diligence for three overseas projects in which it is looking to acquire a stake, according to a top official of NMDC. Agencies will be appointed to conduct due diligence for Ridley iron ore deposit of Atlas Mining, Wonarah phosphate
reserve of Minemakers in Australia and an iron ore project in Brazil. NMDC is looking for resources overseas.
ONGC
ONGC's Assam Asset has registered the highest ever quarterly gas sales in a decade and achieved all its targets during the quarter ended December 31, 2011.The asset achieved the oil production target at 100.1 per cent (0.3031 million metric tons) against the planned figure of 0.3028 MMT on the last day of the quarter, a statement said. The company's Assam asset also registered 8-10 per cent enhancement in asset gas sales over previous quarters and touched the highest daily gas sales figures.
GAIL
Gas utility GAIL India has demanded that the government keep the marketing margin the company and other state-owned firms charge on imported liquefied natural gas (LNG) outside the regulatory purview.
Oil Ministry had in December asked oil regulator PNGRB to determine the marketing margin on sale of natural gas on the basis of actual marketing cost so that the price becomes reasonable to the end consumer.
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