The Hindu Business Line : Cairn India board approves demerger

MUMBAI: Cairn India Ltd has informed BSE that the board has approved a scheme of arrangement between Cairn India and some of its wholly owned subsidiaries. This will facilitate streamlining and consolidation of the multi-layered structure between the com pany and some of its subsidiaries.

Cairn Group’s interests in various Indian oil and gas businesses are currently held through various foreign subsidiaries and this scheme of arrangement will involve the demerger of certain of these businesses into Cairn India. After the implementation of this scheme, Cairn India will own these interests/businesses directly.

Once effective, this will significantly improve administrative efficiencies.

The scheme of arrangement would be effected under Sections 391 to 394 of the Companies Act, 1956.

Cairn Energy India Pty Ltd, Cairn Energy India West B.V., Cairn Energy Cambay B.V. and Cairn Energy Gujarat B.V., subsidiaries of Cairn India would demerge their Indian oil and gas businesses into Cairn India. The subsidiaries being wholly owned entities , no shares are proposed to be issued under the scheme.

The scheme of arrangement is subject to necessary regulatory approvals including the approval of the Honourable High Courts of Mumbai and Chennai. — Our Bureau

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