New Delhi, July 24 (ANI
): The Boards of Vedanta Limited and Cairn India announced approval of the revised and final terms for the merger.
"The Boards of Vedanta Limited and Cairn India have approved revised and final terms for the Transaction, taking into account prevailing market conditions and having regard to underlying commercial factors," a company release stated.
Pursuant to the revised and final terms, each Cairn India minority shareholder will receive for each equity share held, one equity share in Vedanta and four redeemable preference shares with a face value of Rs. 10 in Vedanta.
This translates to implied premium of 20 percent to one month volume-weighted average price (VWAP) of Cairn India share price.
The merger plans were stalled after the income-tax department froze Cairn Energy's 9.5 percent stake in Cairn India.
In 2011, Cairn Energy sold 58.5 percent of Cairn India to Vedanta, for USD 8.67 billion.
However, Vedanta holds 59.88 percent in Cairn India and LIC
owns 9.06 percent in Cairn India
with 3.9 percent stake in Vedanta