Vedanta Group Acquisition of Controlling Stake in Cairn India

They are the first Indian manufacturing company to be listed on the London Stock Exchange. They have operating locations in India.000 employees including over 8. based in London.000 professionals worldwide. . Zambia and Australia.VEDANTA  Vedanta Resources plc is a diversified metals and mining company with revenues in excess of US$6 billion.    They are headquartered in London and have over 30.


TRANSACTION HIGHLIGHTS       Vedanta Group to acquire 51% to 60% of Cairn India Limited (“Cairn India”) for an aggregate consideration of approximately US$8.5-9. Transaction to be funded through debt and cash resources Enhances and diversifies Vedanta’s strong growth pipeline Leverages Vedanta’s core skills and track record of value creation .6 billion in cash. Post completion it is expected that Vedanta Resources PLC (“Vedanta”) will hold 31-40% of Cairn India directly and Sesa Goa Ltd (“Sesa Goa“) will hold 20% Shares acquired from Cairn Energy PLC (“Cairn Energy”) to be acquired at a price of INR355 per share. Vedanta will also pay a non-compete fee of INR50 per share.

The company was acquired by Caledonian Offshore Limited in 1988 and was renamed Cairn Energy PLC. Cairn India was listed on 9 January 2007 on the Bombay and National Stock Exchanges.CAIRN INDIA  Cairn India is now one of the biggest private exploration and production companies currently operating in India.    . Cairn India currently has a market capitalisation in excess of USD 13 billion. ranking as the third largest oil and gas company in India.

Cairn India’s Asset Base .

CAIRN INDIA:Sales And Growth .

exercisable after July 2012 and July 2013. A premium of approximately 32 per cent to the Cairn India average closing price for 90 days prior to 14 August 2010 Put and call options.561m).66 (INR 405))    .Transaction Highlights  Cairn to sell a maximum of 51 per cent of Cairn India to Vedanta Consideration of up to US $8.480m (INR 396.66 (INR 405) per Cairn India share. to ensure a majority interest in Cairn India can be sold (exercisable at US $8. based on US $8.

 Intention to return a substantial proportion of the proceeds from the transaction to Cairn shareholders  Retained cash will provide Cairn with financial flexibility to pursue an active exploration programme in its leading acreage position in Greenland and future growth opportunities Continued exposure to Rajasthan through the retained shareholding in Cairn India   Completion expected before end of 2010 .

.   Cairn India is a world class asset. Enhances and diversifies Vedanta’s strong growth pipeline.Reasons for the Proposed Transaction  A unique investment: the Indian natural resources champion meeting the needs of a growing economy.

5bn to US$9.6bn  Payable on completion (expected by Q1 2011)  Funding  Vedanta Resources: bank debt facilities of up to US$6.Transaction Financing Transaction consideration of US$8. ≥ 2 year tenure  Sesa Goa: c.5bn. US$3bn. primarily from cash resources .

World class asset and management team.Unique Opportunity to Create Value  Creating an Indian natural resources champion: comprehensive footprint across India’s resources sector. Financial flexibility retained and no impact on existing expansion programmes.     . Enhances and diversifies Vedanta’s strong growth profile. Leverages Vedanta’s core skills.