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Vedanta Resources completes 10% stake buy in Cairn India

Vedanta Resources Plc has completed purchase of 10% stake in oil firm Cairn India and also plans to secure majority control of the company Cairn Energy Plc
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Vedanta Resources Plc has completed the purchase of another 10% stake in oil company Cairn India Ltd, The WallStreet Journal reported Wednesday.
Vedanta is also working to secure majority control of the company, Cairn Energy Plc said.
Cairn Energy did not provide any further financial details of the deal but the net proceeds from the sale amounted to $1.362 billion.
The transaction raises stake of Vedanta in the oil company to 28.5% which is a part of a string of deals in the Indian oil and gas sector.
The company’s newly acquired stake amounts to 19.9 million shares in Cairn India.
Cairn Energy remains Cairn India's majority shareholder, with 52.2%, but Vedanta continues to work with Cairn Energy to secure the necessary consents to buy another 30% of Cairn India.
The plans by London-listed miner Vedanta to buy majority control of Cairn India from Cairn Energy were announced last year. But the Indian government had held back its approval because it wanted Cairn to settle long-pending issues of royalty payment with state-run explorer Oil & Natural Gas Corporation and a tax arbitration case against the government.
Earlier this year, BP PLC also announced it was acquiring a 30% stake in Reliance Industries' 23 oil and gas blocks in India for about $7 billion.

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