India's biggest diversified natural resources company Vedanta Resources has announced a merger between its Indian mining subsidiary Vedanta Limited (formerly Sesa Sterlite) and its oil and gas subsidiary Cairn India to drive stable cash flow, to allocate capital to the highest return projects across the portfolio, to sustain dividend distribution and ensure long-term sustainable value enhancement for all shareholders.
According to Vedanta Resources's statement, the deal will allow minority shareholders of Cairn India to receive one equity share in Vedanta for each share held. Meanwhile, the deal which is expected to be completed in the first quarter of 2016 will help Vedanta to reduce its leverage ratios and to access Cairn India's cash.