Vedanta Group announces merger of Vedanta Limited and Cairn India Limited

Vedanta Limited, Cairn India Limited ("Cairn India") and Vedanta Resources plc ("Vedanta plc" together with its subsidiaries, the "Group"), today announce a merger between Vedanta Limited and Cairn India (the "Transaction").

Key Highlights
• Minority shareholders of Cairn India will receive for each equity share held:
- 1 equity share in Vedanta Limited
- 1 redeemable preference share in Vedanta Limited with a face value of INR 10
• Implied premium of 7.3% to the previous close.
• Strategy remains unchanged, with continued focus on delivering attractive growth, sustainable development and long-term value for all shareholders.
• Commitment to growth and to sustain strong dividend distribution.
• Completion expected in first quarter CY 2016

Mr Anil Agarwal, Chairman of Vedanta plc, said:

"The merger of Cairn India and Vedanta Limited consolidates our position as India's leading diversified natural resources champion, uniquely positioned to support India's economic growth. The independent Directors, at both Vedanta Limited and Cairn India, unanimously recommend the proposed combination. This marks a significant step towards achieving our stated long term vision of a simplified group structure with alignment of interests between all shareholders for the creation of long term sustainable value."

Mr Tom Albanese, CEO of Vedanta Limited, said:

"This transaction consolidates our portfolio of Tier-I assets which, combined with strong management, will deliver superior returns for all shareholders. It will result in improved financial flexibility to allocate capital to the highest return projects and sustain strong dividends. The combined entity is uniquely positioned to help unlock India's wealth of world-class energy and mineral resources."

Mr Mayank Ashar, CEO of Cairn India, said:

"The merger with Vedanta Limited will generate additional value for our shareholders and de-risks Cairn India by providing access to a portfolio of diversified Tier-I, low cost, long-life assets, to deliver significant near term growth. Our Rajasthan fields continue to remain our core asset. The financial strength of the enlarged group will ensure greater access to capital to further Indian oil & gas development."