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Shares of Vedanta were trading down by 0.65 per cent at Rs 182.80, while Cairn India shares were trading up by 1.47 per cent at Rs 183.40.
Both the shares rose in pre-open trade after Vedanta offered to buy out minorities in cash-rich oil unit Cairn India in a $2.3-billion deal.
Vedanta shares gained about 2 per cent in pre-open trade, while Cairn India shares were up 2.6 per cent.
Vedanta trades flat on opening. Investors may be wary of whether the Cairn merger will go through.
— Meera Siva (@siva_meera)
June 15, 2015London Stock Exchange listed Vedanta Resources had on Sunday announced an all-stock deal, worth $2.3 billion to minority shareholders, to merge its Indian units Vedanta Ltd and Cairn India Ltd.
The debt-heavy mining and metals company Vedanta Ltd currently owns a 60 per cent stake in cash-rich oil and gas explorer Cairn India.
The deal is expected to be completed by March 31, 2016. After the merger is completed, parent Vedanta Resources Plc’s holding in Vedanta Ltd will drop to 50.1 per cent from 62.9 per cent.
Cairn India’s minority shareholders will have a 20.2 per cent stake and Vedanta Ltd’s minority shareholders will own 29.7 per cent in the combined entity.
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