Cairn India completes 10% sale to Vedanta for $1.3B

By Phaedra Friend Troy

On Monday, Cairn India completed the sale of another stake in the Indian oil and gas company to mining firm Vedanta. The 10 percent slice of Cairn India, represented through the sale of 191,920,207 shares, was sold for about $1.362 billion in cash. 

This takes Vedanta's ownership in Cairn India to 28.5 percent, as the company pursues step-by-step purchases to gain the majority stake of Cairn India

In August 2010, the companies announced a $9.6 billion agreement in which Vedanta would acquire the majority stake in the oil and gas producer, but that agreement is still awaiting approval from Indian authorities.

Nonetheless, the London-based firm has since been acquiring minority stakes in Cairn India. In April 2011, Vedanta bought 10.4 percent in Cairn India from Petronas for $1.5 billion.

Another 30 percent of fully diluted share capital in Cairn India is currently under approval with the government of India.

Right now, Cairn remains the majority shareholder in Cairn India with 52.2 percent shareholding. Should the additional 30-percent sale go through, Vedanta will hold the majority of the company with 58.5 percent.

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