Vedanta to acquire a controlling stake in Cairn India
of 21.7%Vedanta Resources is to acquire a 51% stake in Cairn India from Cairn Energy for US$8.48 billion (subject to change, contingent upon the response to a separate offer to other Cairn India shareholders). Under our base case analysis, we value a 51% stake in Cairn India at US$4.27 billion (NPV10, as at August 2010). Although this valuation is based on a 2P reserve figure greater than that reported by Cairn India, it is nonetheless significantly below the purchase price. The ...