Vedanta-Cairn merger clears final hurdle.

The planned merger of Cairn India with Vedanta has received required approvals from its shareholders, Cairn India said in a statement to the BSE on Monday.

Shareholders of Cairn India had earlier in the day cast their vote on the planned merger in Mumbai. Shareholders of Vedanta had last Thursday cast their votes at a meeting in Goa.




An approval from Cairn India's shareholders was seen as crucial for the merger to be implemented as Cairn’s minority shareholders, including Life Corporation of India (LIC), had earlier expressed reservations on the deal offered.

In a bid to sweeten the deal, on July 22, Vedanta and Cairn India announced a revised deal in which Vedanta offered minority shareholders of Cairn India one equity share and four redeemable preference shares with a face value of Rs. 10 each.

The revision was to sweeten the earlier deal, which involved one equity share and one redeemable preference share. The preference shares will carry a coupon of 7.5 per cent and tenure of 18 months.

“The equity shareholders of Cairn India have approved the Scheme of Arrangement of Cairn India Limited with Vedanta Limited (“scheme”), with requisite majority,” Cairn India said in a statement to the BSE.

Of the members present and validly voting, 65.41 per cent, representing 92.86 per cent in value, voted in favour of the resolution approving the scheme, Cairn India said referring to the court-convened extraordinary general meeting that was held recently in Mumbai.

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