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Cairn India and Vedanta Ltd have received all regulatory approvals for their merger, except the Reserve Bank of India’s nod for issue of preference shares, the two companies said on Tuesday.
“The company has now received all the required approvals in relation to the Scheme of Arrangement between Vedanta Ltd and Cairn India Ltd, and their respective shareholders and creditors, save and except the approval of RBI for issuance of Redeemable Preference Shares to the non-resident shareholders of Cairn,” the two companies said in separate but identical statements.
The merger was first proposed by the two companies in mid-2015 but minority shareholders of Cairn India were unhappy with the original terms.
In 2016, the companies modified the merger terms, giving shareholders of Cairn India one equity share of Vedanta and four redeemable preference shares of face value ₹10 and coupon 7.5 per cent, as against the earlier proposal of one equity share and one preference share.
The new terms were then approved by both sets of shareholders.
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