NCLT approves merger of Vedanta Ltd and Cairn India; shares edge up

Vedanta Limited, a subsidiary of metal & mining conglomerate Vedanta Resources, has made an announcement today that National Company Law Tribunal has approved the merger of Cairn India Limited with Vedanta Limited.

It is to be noted that the equity shareholders of Vedanta Resources, Cairn India Limited and Vedanta Limited approved the Scheme of Arrangement of Cairn India Limited with Vedanta Limited in September 2016. The scheme was then subjected to the approval of the jurisdictional High Courts and other regulatory approvals.

According to Anil Agarwal, Chairman of Vedanta Resources plc, “the simplified corporate structure will better align interests between all shareholders for the creation of long-term, sustainable value.”

“With our focus on simplifying the group structure, the Vedanta Limited and Cairn India merger is expected to be completed in the first quarter of CY 2017,”said Tom Albanese, Chief Executive Officer, Vedanta Limited, in his address during the release of it Q3 results.

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The National Company Law Tribunal, Mumbai Bench has today approved the Scheme of Arrangement between Vedanta Limited and Cairn India Limited, and their respective shareholders and creditors.  The certified copy of the order is awaited from the Tribunal.

Meanwhile, shares of Vedanta Limited and Cairn India gained on Indian equity indices after the National Company Law Tribunal (NCLT) on Thursday approved their merger plans.

On BSE, shares of Vedanta surged over 2.30% trading at INR 267.05. While shares of Cairn India jumped by nearly 4% trading at Rs 304.5.