The acquisitive London-based billionaire, Anil Agarwal, has just wrapped up the 11th and biggest acquisition of his career spanning three decades. The $70-billion Vedanta group on Monday announced the acquisition of the third largest oil exploration company in the country, Cairn India, for $9.6 billion (over Rs 45,000 crore), marking the group’s maiden foray into the lucrative business of oil and gas. When the deal goes through, it will also be the third largest M&A transaction by an Indian group. The acquisition would be financed through a combination of debt amounting to $6.5 billion with the balance coming through internal accruals. Agarwal said that his company would unleash the potential of the sector through this acquisition, which gives it an interest in 11 oilfields in the country and one in Sri Lanka.
Vedanta gets access to Cairn India’s energy assets, including gas reserves in Cambay and Krishna-Godavari basin in AP and the Mangala oilfield in Rajasthan that currently produces 1.25 L barrels per day but has a potential of 1.5 L b/day
Cairn India will end up with a $8.5 bn pile, besides retaining at least a 10.6% stake
Vedanta to buy 51-60% stake—40% (through THL Aluminium) from Cairn Energy and 20% (through Sesa Goa) from open offer; Cairn will make up for shortfall if open offer is not fully subscribed
Vedanta gets access to Cairn India’s energy assets, including gas reserves in Cambay and Krishna-Godavari basin in AP and the Mangala oilfield in Rajasthan that currently produces 1.25 L barrels per day but has a potential of 1.5 L b/day
Cairn India will end up with a $8.5 bn pile, besides retaining at least a 10.6% stake
Vedanta to buy 51-60% stake—40% (through THL Aluminium) from Cairn Energy and 20% (through Sesa Goa) from open offer; Cairn will make up for shortfall if open offer is not fully subscribed
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