“The public shareholders of the Company have approved the Scheme with requisite majority, that is, votes cast by the public shareholders in favour of the Scheme are more than the votes cast by the public shareholders against the Scheme”.
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Metals and mining company Vedanta Ltd will hold the court-convened meeting in Goa on Thursday for the proposed merger with its subsidiary Cairn India Ltd.
However, the real test for Agarwal is on September 12, when Cairn India has called a shareholders meeting to seek approval for the companys takeover by its parent under a revised all-share deal.
Vedanta said the merger is now subject to approval of the ” jurisdictional High Courts, and other regulatory approvals”. “Thus, the scheme has been approved by a majority of the minority shareholders”.
For the merger to go through, half the minority investors have to approve the deal. The merger requires approval from at least 51% of Cairn India’s minority shareholders. The initial offer, which was made during June 2015, was of one equity share and one preference share in Vedanta. The preference shares will carry a coupon of 7.5 per cent and a tenure of 18 months.
The state-owned insurer’s decision comes after Vedanta sweetened an earlier offer for Cairn India’s shareholders to salvage the merger that would give Vedanta access to Cairn India’s $3.5 billion cash pile. Cairn India’s shareholders will benefit from exposure to a diversified portfolio of world-class, low cost, long-life assets with significant growth.Scrips of both the companies are likely to remain in focus on September 9. Cairn India’s minority shareholders will own 20.2 per cent and Vedanta’s minority shareholders will own 29.7 per cent stake in the enlarged entity.
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Vedanta is said to be wanting to use Rs 23,290 crore cash lying with Cairn to pay off part of its Rs 77,952 crore debt.
