Vedanta Resources to Buy 40% of Cairn Energy

It now seems that well-known Indian mining group Vedanta Resources is going to buy a 40 percent stake in Cairn Energy. Reports on Thursday noted that this deal was going to go down for an estimated $6.8 billion.

Some may remember that, back in August of last year, Cairn Energy had actually announced the sales of 40 to 51 percent stakes in Cairn India to Vedanta. Of course, the announcement, made this week, comes following the results of an open offer that Vedanta made to the minority shareholders.

Vendanta went on to say in a press statement that a total of 155 million Cairn India shares have been bought. This represents about 8.1 percent of the shares in the company. They were purchased in an open offer that was closed on April 30.

Cairn Energy said that they and Vedanta have agreed, for the purposes of the formula set out in the Share Purchase Deed, that these shares will all be treated as if they had been acquired in the open offer. Accordingly, Cairn Energy will sell a stake in Cairn India to Vendanta, which is equivalent to 40 percent of the share capital.

This is just one of the many energy deals that have been going on lately. A number of companies are looking to grow while others are looking to just stay afloat. Right now, with rates being so low, it’s the perfect time for some companies to strike. After all, many companies are seeing that the way of the energy industry is changing. Some are going to have to change their whole business plan if they are going to continue operating further down the road.