Vedanta buys majority stake in Cairn India

It is official now.

Vedanta Resources will acquire an equity stake of 31% in Cairn India for $8.5-9.6 billion via debt and cash.

Anil Agarwal-promoted Vedanta, which owns Sterlite Industries, Hindustan Zinc and Sesa Goa, said it will hold 31-40% directly in Cairn India and 20% of the stake will be held by Sesa Goa, and make an open offer for 20%.

The open offer price will be priced at Rs 405 (incl non-compete fee of Rs 50), subject to the approval of the shareholders.

Proposed transaction is expected to close by the first quarter of 2011

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