Shares of Vedanta Limited jumped as much as 3.55 per cent today to hit fresh 52-week high of Rs 180.80. But shares of Vedanta group company Cairn India fell as much as 0.83 per cent to hit intraday low of Rs 201.30.
Mining and metal conglomerate Vedanta Resources on Tuesday said its shareholders have approved the merger of its group firms Vedanta Limited and Cairn India. London-listed Vedanta Resources, controlled by billionaire Anil Agarwal, is the parent of Vedanta Limited.
A merger between Vedanta Limited and Cairn India would create a metal and energy behemoth, with activities spanning from oil to metals.
Earlier in July this year, Vedanta Limited had offered to sweeten the terms for taking over subsidiary Cairn India, after opposition from some minority shareholders. Under the new offer, Vedanta Limited will give one share and four redeemable preference shares for each share in Cairn India. Earlier, it had offered one share and one redeemable preference share for each Cairn share.
The deal, which will give debt-ridden Vedanta Limited, access to oil and gas explorer Cairn India's $3.5 billion cash pile, has faced opposition from some big minority shareholders.
Meanwhile, Cairn India has called a shareholders' meeting on September 12 to consider the revised offer while Vedanta Limited will be holding a meeting of its shareholders and creditors on September 8 to seek their approval for the merger.
Cairn India shares ended 1.16 per cent lower while Vedanta Ltd ended 0.03 per cent lower.
(With agency inputs)
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