Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Vedanta close to Indian oil deal

Sunday 15 August 2010 19:00 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Cairn Energy is poised to sell its Indian oil fields to Vedanta Resources for £5bn, in a deal that will net the explorer's shareholders a windfall of at least £1bn.

It is thought that the Edinburgh-based explorer, which has a 62 per cent stake in the Indian subsidiary, could unveil the sale of the 51 per cent shareholding to Vedanta as early as today.

The two groups were thought to be putting the final touches to a deal over the weekend.

The acquisition would catapult Vedanta, the world's biggest zinc producer, into the oil business, as part of its plans to become a fully blown resources group.

It is thought that Sir Bill Gammell, the chief executive of Cairn, would receive at least £2m for his 0.2 per cent stake, but it could be more, depending on the size of the deal. Cairn would use the proceeds from the share sale to fund its extensive drilling programme in Greenland.

Vedanta, the world's biggest zinc producer, is eager to develop into a leading resources group, and encourages the moniker "the Indian BHP Billiton", referring to the Anglo-Australian giant that has interests in numerous commodities.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in