Cairn and Vedanta extend deadline on closing deal

Cairn Energy Plc said on Thursday that it has been informed that the Government of India (GoI) Cabinet Committee on Economic Affairs which met on 6 April 2011 to discuss the Cairn Vedanta transaction has referred the matter to a Group of Ministers (GoM). The GoM has not yet met. Accordingly the two companies have agreed to extend the closing date of their Sale and Purchase Agreement in order to secure the necessary consents and approvals from the GoI to complete the transaction. Cairn has been notified by Vedanta of the results of the Open Offer for Cairn India shares by Sesa Goa Limited (a subsidiary of Vedanta), which closed on 30 April 2011. A total of approximately 155 million Cairn India shares, representing 8.1 per cent of the share capital, have been tendered. Following the acquisition of both the 10.4 percent stake from PETRONAS International Corporation Limited announced on 19 April 2011 and the Open Offer shares, Sesa Goa Limited will hold 18.5 per cent of the share capital of Cairn India. Cairn and Vedanta have agreed that, for the purposes of the formula set out in the Share Purchase Deed entered into in August 2010; these shares will all be treated as if they had been acquired in the Open Offer. Accordingly, on completion of the Transaction, Cairn will sell a stake in Cairn India to Vedanta equivalent to 40 per cent of the share capital, following which Cairn will hold a residual interest of 21.7 per cent of the share capital.