Vedanta will hold a 31%-40% stake in Cairn India directly, while its Indian subsidiary Sesa Goa will hold 20%.
Cairn Energy, which holds 62.37% interest in Cairn India, said it will sell a maximum of 51% of Cairn India to Vedanta.
Vedanta will acquire the shares from Cairn Energy at a price of INR355 (approximately $7.57) per share and also pay a non-compete fee of INR50 (approximately $1.06) per share.
The retained cash is expected to provide Cairn Energy with financial flexibility to pursue an active exploration program in Greenland and future growth opportunities.
Vedanta executive chairman Anil Agarwal said that the proposed acquisition will enhance Vedanta’s position as a natural resources champion in India.
