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Vedanta to pick 51-60% in Cairn India

Shares of Cairn India touch all time high of Rs 368

Vedanta Group on Monday said it would pick 51-60 per cent stake in Cairn India for $8.5-9.6 billion all cash deal.

Vedanta will directly pick 31-40 per cent in the oil company, while its subsidiary Sesa Goa will pick up 20 per cent, the company informed the Bombay Stock Exchnage (BSE) on Monday.

According to the announcement made by Sesa Goa on the BSE, the 20 per cent stake would be acquired under an open offer to be undertaken by Sesa Goa along with Vedanta in accordance with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (as amended). “If there is insufficient take up in the open offer, Sesa Goa will acquire the balance as part of the Vedanta Group's acquisition of a 51-60 per cent stake in Cairn India,” Sesa Goa informed the BSE.

Vedanta will pay Rs 355 per share and a non-compete fee of Rs 50 per share to acquire Cairn India's shares.

Cairn India shares were trading at Rs 337 at 1:05 pm on BSE. It touched a high of Rs 368 in early trading sessions after Vedanta’s announcement to pick majority stake in the company.