The chairman of Cairn India, a unit of the UK’s Cairn Energy, said on Thursday he hopes the deal for London-based Vedanta Resources to buy a controlling stake in the Indian firm would close by end-2010.
Vedanta, in its first move into the energy sector, is buying a controlling stake in India’s No. 4 oil and gas company from Cairn Energy to capitalise on rising energy demand, economic growth and an expanding population.
Vedanta Resources has offered 405 rupees a share for between 40 and 51 percent of Cairn India. The final stake bought would depend on the response to an open offer for a 20 percent stake made to minority shareholders at 355 rupees a share. That offer opens on Oct. 11.