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Vedanta satisfies all terms for Cairn India takeover

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Press Trust of India New Delhi
Last Updated : Jan 21 2013 | 1:22 AM IST

London-listed Vedanta Resources Plc today said it has satisfied all conditions for acquisition of Cairn India.

Vedanta is buying 40% stake of British oil firm Cairn Energy Plc in Cairn India for about $6 billion.

In a press statement, Vedanta said it "has now satisfied the conditions under the Sale and Purchase Agreement for the acquisition of a controlling stake in Cairn India."

"Vedanta and Cairn Energy Plc are working towards the closing of the transaction and a further announcement will be made in due course," it added.

The transaction was announced in August last year but its conclusion has been delayed mainly due to a disagreement between Cairn India and its partner state-owned Oil and Natural Gas Corporation (ONGC) over royalty payments.

Cairn Energy in a separate statement said: "As previously announced, Cairn intends to return a substantial proportion of the proceeds from the sale to shareholders. A further announcement in this respect will be made in due course."

The company said it would retain about 22% shareholding in Cairn India after the Vedanta transaction.

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First Published: Dec 06 2011 | 7:47 PM IST

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