KUALA LUMPUR: Petroliam Nasional Bhd has confirmed the sale of all of its 14.94% stake (283.4 million shares) in Cairn India Ltd for US$ 2.1 billion.
It said on Tuesday, April 19 it had sold the shares held by Petronas International Corp Ltd.
'The transaction brings to a close a successful association as a shareholder with Cairn India since 2006,' it said in a brief statement.
Reuters reported that India-focused miner Vedanta Plc bought an 11% stake worth about US$1.5 billion in Cairn India, easing the pressure on its open offer for the energy firm and bringing it closer to a majority stake in the unit.
Vedanta's US$9.6 billion deal to buy a majority stake from Cairn Energy in India's No. 4 oil and gas firm is yet to receive the Indian government's approval, eight months after its announcement, due to a dispute in royalty payments.
The acquisition was part of London-based mining magnate Anil Agarwal's plans to grab a slice of India's oil reserves and get exposure to surging demand. Vedanta will join BHP Billiton as the only miner with large oil interests.
Vedanta bought the 11% stake in Cairn India from Petronas, which also sold its remaining nearly 4% stake to some foreign portfolio investors.
Reuters quoted analysts saying that Vedanta's share purchase in Cairn India, done through block deals, will help it gain a majority stake in the company even if an open offer to buy additional shares in Cairn India from minority shareholders does not see a big response.
"This is a strategic move by Vedanta and it makes the open offer inconsequential," said Jagannadham Thunuguntla, head of research at brokerage SMC Global Securities.
"Vedanta will now be able to get a comfortable controlling stake in Cairn India even if the open offer response is very poor," he said. "But all this is subjective to the government clearing the deal and that is an unknown factor."
It said on Tuesday, April 19 it had sold the shares held by Petronas International Corp Ltd.
'The transaction brings to a close a successful association as a shareholder with Cairn India since 2006,' it said in a brief statement.
Reuters reported that India-focused miner Vedanta Plc bought an 11% stake worth about US$1.5 billion in Cairn India, easing the pressure on its open offer for the energy firm and bringing it closer to a majority stake in the unit.
Vedanta's US$9.6 billion deal to buy a majority stake from Cairn Energy in India's No. 4 oil and gas firm is yet to receive the Indian government's approval, eight months after its announcement, due to a dispute in royalty payments.
The acquisition was part of London-based mining magnate Anil Agarwal's plans to grab a slice of India's oil reserves and get exposure to surging demand. Vedanta will join BHP Billiton as the only miner with large oil interests.
Vedanta bought the 11% stake in Cairn India from Petronas, which also sold its remaining nearly 4% stake to some foreign portfolio investors.
Reuters quoted analysts saying that Vedanta's share purchase in Cairn India, done through block deals, will help it gain a majority stake in the company even if an open offer to buy additional shares in Cairn India from minority shareholders does not see a big response.
"This is a strategic move by Vedanta and it makes the open offer inconsequential," said Jagannadham Thunuguntla, head of research at brokerage SMC Global Securities.
"Vedanta will now be able to get a comfortable controlling stake in Cairn India even if the open offer response is very poor," he said. "But all this is subjective to the government clearing the deal and that is an unknown factor."
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