New Delhi: Unable to quickly absorb its cash-rich oil subsidiary Cairn India, mining billionaire Anil Agarwal’s Vedanta Ltd has sweetened the merger deal by offering three additional preference shares.
Agarwal had in June last year announced merger of Cairn India with parent Vedanta Ltd in a $2.3 billion all-share deal to create India’s largest diversified natural resources company.
That time, it was announced that shareholders of Cairn India will get one ordinary share and 7.5 percent redeemable preference share of Vedanta Ltd with a face value of Rs 10.
Friday, the company announced that “each Cairn India minority shareholder will receive for each equity share held one equity share in Vedanta Ltd and four Redeemable Preference Shares with a face value of Rs 10 in Vedanta Ltd, with a coupon of 7.5 percent and tenure of 18 months from issuance.”
The new ratio, the company said, implied premium of 20 percent on one month Cairn India share price.