India-focused miner Vedanta Resources said on Friday it intends to sell bonds in a private offering to institutions to help pay for its planned acquisition of Cairn Energy’s India unit.
It did not say how big the offering would be.
Vedanta said the proceeds would be used to pay fees and expenses related to the deal. If the deal does not go ahead, the miner said it would use the cash to “fund capital expenditure, repay debt and for other general corporate purposes.”
Cairn agreed in August 2010 to sell a majority stake in Cairn India to Vedanta, but the deal has been delayed due to a dispute over royalty payments.
A panel of Indian ministers is expected to meet on May 27 to consider the sale. Cairn and Vedanta on Thursday extended a May 20 deadline for the $9.6 billion deal.