RNS Number : 1869F
Vedanta Resources PLC
19 April 2011
19 April 2011
Vedanta Resources Plc
Acquisition of a 10.4 % stake in Cairn India Limited ("Cairn India") by Sesa Goa Limited ("Sesa Goa") from Petronas International Corporation Ltd ("Petronas")
Vedanta Resources Plc's ("Vedanta") subsidiary Sesa Goa today acquired 200 million shares amounting to a 10.4 % stake in Cairn India from Petronas at INR 331 in a block deal (the "Acquisition").
This acquisition of shares is in addition to the Open Offer launched by Sesa Goa on Monday, April 11, 2011 and the Open Offer will continue as per the Letter of Offer dated April 11, 2011.
As announced on 13 December 2010, Vedanta received shareholder approval for the purchase of a 51%-60% interest in Cairn India (the "Cairn India acquisition"). Full details of the transaction are contained in the circular to shareholders published on 25 November 2010 (the "Circular"). As stated in the Circular, the Board believes that the acquisition of a controlling stake in Cairn India will add to the Vedanta Group an additional high quality asset in an attractive natural resources segment. The Board believes that the Cairn India Acquisition will deliver significant value to Vedanta and will be immediately earnings accretive.
After obtaining all the necessary Government of India approvals and consents, Vedanta looks forward to the successful completion of the Cairn India acquisition and would own between 51%-70.4% of Cairn India.
As per accounts of Cairn Energy, for the year ending 31 December 2010, Cairn India's profit before tax was US$1,049.4 million and gross assets were US$4,724.1 million as that date.
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.
This information is provided by RNS
The company news service from the London Stock Exchange