CAIRN INDIA-VEDANTA MERGER: CAN IT CREATE A 'WIN-WIN' SITUATION? Case Solution
Vedanta's group business consisted of Vedanta Limited, BALCO, Konkola Copper Mines, Copper Mines of Tasmania, Hindustan Zinc Ltd, Talwandi Sabo Power, Cairn India Limited (Cairn India) and Zinc International. In Might 2015, Vedanta Limited (Indian subsidiary of Vedanta) obtained 5.33% stake in Cairn India for '22 billion from Twin Star Mauritius Holding, a subsidiary of Vedanta based in Mauritius. With this merger, Vedanta's stake in Vedanta Limited would come down to 50.1% (from 62.9%) while 20.2% and 29.7% would be held by the minority investors of Cairn India and Vedanta Limited respectively.
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