Indian iron ore producer Sesa Goa to acquire stake in Cairn India

Indian iron ore producer Sesa Goa Ltd has announced that it will acquire a 20 percent stake in domestic oil and gas company Cairn India under an open offer, as a part of its parent company Vedanta Group's ambition to acquire 51-60 percent in Cairn India for between $8.5 billion and $9.6 billion.
 
Cairn India is the fourth largest oil and gas company in India.
 
Sesa Goa will fund the proposed investment primarily through its cash balances. The proposed transaction is expected to close by the end of the current year.
 
P.K. Mukherjee, managing director of Sesa Goa, said: "The proposed strategic investment provides Sesa Goa an opportunity to earn superior returns in an investment which will benefit from value creation as part of the Vedanta Group whilst providing the protection of participating in a controlling interest."
 
Sesa Goa said that its planned doubling of iron ore capacity to 50 million metric tons a year in the next few years will not be affected by the transaction.