Cairn India , oil and gas unit of London-listed Vedanta Resources, is set to spend about USD 1 billion to buy back shares, Bloomberg reported on Sunday citing two people familiar with the matter.
The share purchase will include buying back Cairn Energy Plc's 10.3 percent stake in the company, Bloomberg said citing one of the sources.
Mining conglomerate Vedanta, controlled by billionaire Anil Agarwal, acquired a majority stake in Cairn India for almost USD 9 billion in 2011. Since then, Cairn India played a pivotal role in boosting revenue and production even as Vedanta's mining business in India faced regulatory hurdles and mining restrictions.
The plan may help Sesa Sterlite and Agarwal's other subsidiaries increase ownership in Cairn India to more than 65 percent from 59 percent, the source told Bloomberg.
Cairn India's board is expected to meet on November 26 to consider a buyback.
The share purchase will include buying back Cairn Energy Plc's 10.3 percent stake in the company, Bloomberg said citing one of the sources.
Mining conglomerate Vedanta, controlled by billionaire Anil Agarwal, acquired a majority stake in Cairn India for almost USD 9 billion in 2011. Since then, Cairn India played a pivotal role in boosting revenue and production even as Vedanta's mining business in India faced regulatory hurdles and mining restrictions.
The plan may help Sesa Sterlite and Agarwal's other subsidiaries increase ownership in Cairn India to more than 65 percent from 59 percent, the source told Bloomberg.
Cairn India's board is expected to meet on November 26 to consider a buyback.
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