Vedanta acquired a controlling stake in Cairn India Ltd. Specifically: - Vedanta bought an 11% stake in Cairn India from Petronas for $1.5 billion in 2011. - In December 2011, Vedanta acquired 30% of Cairn India from Cairn Energy for a total of $8.67 billion, giving it a 58.5% controlling stake. - The acquisition provided Vedanta access to Cairn India's significant oil reserves in India and was expected to be immediately earnings accretive for Vedanta.

1. Vedanta Acquired a controlling
stake in Cairn India Ltd

2. Vedanta Resources Plc
• Vedanta Resources plc ("Vedanta") is a London listed
FTSE 100 diversified metals and mining major.
• Globally diversified natural resources group
• world’s largest integrated Zinc Lead producer and
among the top producers of copper, iron ore and silver.
• Group Revenue for the fiscal year ending 31 March 2011
was US$ 11.4 billion.

3. Locations & operations
Geographical Locations:
– Australia
– India
– Liberia
– Namibia
– South Africa
– United Kingdom
– Zambia
Operations:
– India – Aluminium, Copper, Zinc, Iron Ore, Power
– Australia – Copper
– Zambia - Copper
– Namibia - Zinc
– South Africa - Zinc
– Liberia – Iron Ore
– Ireland – Zinc

4. Financial Summary

5. Vedanta Group Structure

6. Cairn India ltd
• Cairn India – largest private crude producer in India (>20% of
India’s production)
− World class assets at Rajasthan (>6.5 bn boe in place, with
substantial upside)
− Low cost operations at Rajasthan and potential to produce
240,000 bopd
− Recent exploration success in Sri Lanka
− Strong, experienced management team

7. • Cairn India is one of the most significant oil and gas
exploration and production companies in South Asia.
• 1295 employees in India alone and world class oil
reserves in one of the fastest-growing economies in the
world.
• Cairn India has operations in Andhra Pradesh, Gujarat
and Rajasthan.

8. • Financials
Revenue - INR 102,779 million.
PAT - INR 63,344 million. (31 March, 2011)
• Shares in issue
1,902,582,377 equity shares of Rs.10 each as on 30
September 2011.
• Listings
Cairn India was listed on 9 January 2007 on the Bombay
and National Stock Exchanges. It is ranked amongst the
top 25 companies in term of market capitalization.

10. Vedanta Bought 11% Of Cairn India
From Petronas
• Malaysia's national oil corporation Petronas had a 12.3% stake in
Cairn India before transaction
• Vedanta Resources Plc has bought 11% stake for $1.5 Bn in Cairn
India Ltd from Petronas on April,2011
• Vedanta bought the stake at Rs.331 per a share
• The acquisition was part of vedanta’s plan to get exposure in India's
oil reserves.
• Vedanta group held 28.5 after the transaction%

11. Vedanta’s Proposal to Cairn
• Cairn Energy, which owns 52.11% stake in Cairn
India, has voted to accept government conditions.
• The company dint not pay any royalty on its 70%
interest in the Rajasthan fields.
• The royalty was paid by ONGC, which got a 30%
stake in the 6.5 billion barrel field for free.
• The Cabinet Committee on Economic Affairs (India) on
June 27 gave consent to the Cairn-Vedanta deal

12. Vedanta Acquired Cairn
• Acquired 30% of the fully diluted share capital of Cairn
India from Cairn Energy PLC on 8th Dec 2011
• The Vedanta group now holds 58.5% of the fully diluted
share capital of Cairn India and has paid a total gross
consideration of US$8.67 billion.
• Of the 58.5% stake, 38.5% stake held by vedanta plc
and 20% is held by Sesa Goa Limited, a subsidiary of
Vedanta.
• After transaction,Cairn retains an 22% share holding in
Cairn India.

13. Cairn Acquisition Funding
Consideration ($bn)
20% stake acquired by Sesa Goa 2.88
38.5% stake acquired by Vedanta plc 5.79
Total Consideration 8.67

14. Funding
Sesa Goa – Own resources 2.88
Sr. Secured Bank Term Loan 2.78
Bonds 1.65
Own Cash 1.36
Bridge to Equity never drawn
Vedanta plc – Total 5.79
Total Funding 8.67

15. Credit Metrics
Proforma 30 Sep 2011 (including Cairn) in $ mn Debt Cash and Liquid Investments Net Debt
Vedanta plc 9,127 178 8,949
Vedanta Consolidated 16,620 6,438 10,18

16. Benefits
• The acquisition is a landmark event for the global natural
resources sector and for India, which is looking at
sustainable energy sources to fuel its growing economy.
• Cairn India possesses an enviable talent pool and
vedanta welcomes it to the their family.
• Vedanta believes that Cairn India has the potential to
double its current capacity and both will work together to
achieve it.

17. Summary
• Immediately earnings accretive
• World class asset and management team
• Common operating philosophy – focus on delivery and
costs
• Maintain strong credit metrics – funded through 50%
own resources and 50% debt
• Unique opportunity to create value enhances and
diversifies Vedanta’s strong growth profile

18. Prepared by
P.SARAVANAN B.Tech.,MBA
www.twitter.com/saravananrulez

19. Thank You