LONDON/MUMBAI: Shares of NRA billionaire Anil Agarwal-led Resources fell 5.59 percent on the London Stock Exchange on Friday, amid rumors it could acquire a majority stake in India’s energy branch.
In the late afternoon session, the scrip traded at £20.61, down 5.50 percent on the LSE. Vedanta opened positively, but soon hit the red.
The broader market was also weak with the benchmark FTSE 100 trading at 5,248.95, down 0.32 percent in the late afternoon session.
On the other hand, Cairn Energy Plc climbed 1.41 percent and traded at 4.59 pounds on the LSE.
Also in India, Vedanta Group company Sterlite Industries fell more than 4 percent, closing at Rs 160.70 on the Bombay Stock Exchange. Sterlite was the biggest loser in the Sensex pack today.
In contrast, the Indian branch of Cairn Energy Plc, Cairn India, rose more than 5 percent, reaching an all-time high of Rs 358 on the BSE. The scrip ended with a gain of 355.45, up 4.36 percent.
Vedanta Resources Plc is in talks to acquire a 51 percent majority stake in Cairn India for around $8-8.5 billion (close to Rs 40,000 crore) and a deal could be announced Sunday night or Monday.
Scottish explorer Cairn Energy Plc, which has a 62.37 per cent stake in India-listed Cairn India, wants a premium of up to 20 per cent for the passing of the majority stake, two people who were aware of the development said.
Agarwal “meets Cairn Energy Plc Chief Executive Bill Gammell in London today and the deal is likely to be announced Sunday evening or Monday,” said one of them.
The deal will be subject to government approval as Cairn’s three oil and gas-producing assets, including the massive Rajasthan fields, and seven exploration blocks have either explicit provisions for obtaining pre-approval before the transfer of interest or pre-emption rights. or the right of first refusal on all shares sold to partners such as ONGC.
This post Cairn: Vedanta to deposit 5.59 percent on LSE amid talks to buy Cairn stake
was original published at “https://economictimes.indiatimes.com/markets/stocks/news/vedanta-plunges-5-59-per-cent-on-lse-amid-talks-to-buy-cairn-stake/articleshow/6306526.cms”
