RNS Number : 4824E
Vedanta Resources PLC
07 April 2011
7 April 2011
Vedanta Resources Plc
Proposed acquisition of a majority stake in Cairn India Limited (the "Transaction")
On April 6, 2011 Vedanta Resources plc ("Vedanta") announced receipt of SEBI clearance by its subsidiary, Sesa Goa Ltd. ("Sesa"), to commence the Open Offer for up to 20.01% of the shares of Cairn India Ltd ("Cairn India"). Sesa has posted the Letter of Offer to acquire up to 383,985,368 shares of Cairn India representing 20.01% of Cairn India's fully diluted voting share capital at a price of Rs 355 per share. The Open Offer will open on Monday, April 11, 2011 and close on Saturday, April 30, 2011.
Vedanta and Cairn Energy plc ("Cairn Energy") have extended the long stop date in the sale agreement, by which all conditions must be completed or waived (where permitted), to 20 May 2011 in order to accommodate the completion of the Open Offer.
SEBI has also notified Vedanta that the put and call options exercisable by Cairn Energy and Vedanta, respectively and the pre-emption right exercisable by Vedanta in connection with the transaction, must be removed from the sale agreement as they do not comply with certain Indian securities regulations.
As a result of this stipulation by SEBI and to allow the Open Offer to proceed, Cairn Energy and Vedanta have agreed that the put and call options shall not be enforceable or exercisable. Vedanta has also agreed that its pre-emption right shall not be enforceable or exercisable.
Should Sesa acquire less than 20% of Cairn India shares in the open offer, Sesa may, following completion of the acquisition, acquire a further number of Cairn India shares to reach 20% either directly from Cairn Energy following RBI and other approvals, or from Vedanta.
The enforceability of the sale agreement is otherwise unaffected and Vedanta looks forward to the successful completion of the Transaction after obtaining all the necessary Government of India approvals and consents.
For further information, please contact:
Senior Vice President - Investor Relations
Vedanta Resources plc
+ 91 22 6646 1531
Tel: +44 20 7251 3801
About Vedanta Resources plc
Vedanta Resources plc ("Vedanta") is a London listed FTSE 100 diversified metals and mining major. The group produces aluminium, copper, zinc, lead, iron ore and commercial energy. Vedanta has operations in India, Zambia and Australia and a strong organic growth pipeline of projects. With an empowered talent pool of 29,000 employees globally, Vedanta places strong emphasis on partnering with all its stakeholders based on the core values of entrepreneurship, excellence, trust, inclusiveness and growth. For more information visit www.vedantaresources.com
This press release contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
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