Vedanta Resources Plc
London-listed Vedanta now holds 58.5 percent of Cairn India
Cairn Energy, which will retain a 22 percent stake in Cairn India, confirmed it would return around $3.5 billion to shareholders.
Cairn Energy agreed in August last year to sell a majority stake in Cairn India to Vedanta. But the sale, one of the largest in India's energy sector, was delayed for months due to a disagreement over royalty payments.
Today marks a key milestone for Vedanta as it puts to bed a deal drawn out for well over a year that has contributed to underperformance on fears of deal terms uncertainty and balance sheet stress, analysts at Liberum said in a note.
Oil has been a solid performer over the course of 2011 ... we see the Cairn India inclusion as the key factor in repairing Vedanta's balance sheet and boosting bottom-line performance.
(Reporting by Clara Ferreira-Marques; Editing by David Holmes)