 "Vedanta confident of closing Cairn merger by March 2016")
"We are in regular touch with the shareholders of both the companies and the response has been very encouraging. The market has embraced the proposed merger and we are confident that the shareholders will approve the decision," Tom Albanese, CEO of Vedanta told PTI on the sidelines of the company's 50th Annual General Meeting.
He termed the merger as a "win-win for shareholders of both the companies."
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"We are very much confident that it will get completed as per the timeline announced by fourth quarter of this fiscal year," he added.
Albanese further said that after the merger, Vedanta will emerge as India's first and largest diversified natural resources company and will maximise returns to the shareholders of both the companies.
"With this merger, Vedanta is taking a significant step towards achieving its long-term vision of simplifying the company's corporate structure and maximising shareholder returns," the CEO said.
Last month, the company announced that it will merge its oil exploration arm Cairn India into itself through an all share deal. The firm has proposed to offer one share of Vedanta against one share of Cairn to the minority shareholders of the oil exploration firm.
Besides, Cairn shareholders have also been offered one redeemable preference share of Rs 10 at face value with 7.5% annual dividend for each share held in the company.
Cairn India has assets such as Mangala, Aishwariya, Barmer and Cambay which produce around 27% of India's crude output.
The company has cash and cash equivalent of about Rs 17,000 crore on its books.
Vedanta on the other hand, has over 60% of its assets in India and around 13% in Africa.
Albanese reiterated that the merger will benefit and create long-term value for the shareholders of all the three companies - Vedanta Ltd, Cairn India and Vedanta Resources.
"We are committed to sustaining and enhancing the Cairn India brand and maximising its potential," he added.
According to him, the merger will deliver significant economies of scale, including improved optionality to allocate capital and will strengthen interactions with the government and sustainability initiatives.