Cairn India shareholders say ‘Aye’ to Vedanta merger

The equity shareholders of Cairn India have approved the merger with Vedanta Limited, with requisite shareholders' majority. Of the members present and validly voting, 65.41 per cent in number, representing 92.86 per cent in value, voted in favour of the resolution approving the scheme of merger.

The merger has also been approved by a majority of the minority shareholders which was a real stumbling block in this whole merger saga. The public shareholders of the company have casted 72.43 per cent of votes (in value) in favour of the resolution.Vedanta Limited's shareholders have approved the merger on September 9, 2016.

On July 22, Vedanta had offered Cairn India's shareholders one equity share and four redeemable preference shares in the metals and mining company, sweetening the terms after minority shareholders' lukewarm response to the offer made from Vedanta.

The merger will give Vedanta access to Cairn India’s USD 3.5 billion cash pile and potentially help it repay debt and reduce finance costs.

The merger, of the two entities will create a large, diversified natural resources company with reduced earnings volatility and enable better capital allocation to business.

The merger scheme is now subject to the approval of the jurisdictional High Courts and other regulatory approvals and is expected to be effective by the end of this financial year.

Shares of Vedanta and Cairn India are likely to remain in focus on September 14.