Merger of Vedanta Limited and Cairn India Limited to Create Shareholder Value 14 June 2015 Conference call and webcast details on the last page
Transaction overview and rationale
Transaction highlights Board approved merger of Vedanta Limited and Cairn India Limited Cairn India Limited minority shareholders will receive for each equity share held: o One equity share in Vedanta Limited o One 7.5% Redeemable…
Strategic Rationale Diversified portfolio de-risks earnings volatility and drives stable cash flows through cycle Improved ability to allocate capital to highest return projects Greater financial flexibility to sustain strong…
Benefits to Cairn India shareholders Attractive terms for Cairn India shareholders The diversified commodity model has generated superior shareholder returns Earnings de-risked through diversification 2005 2015 Total Shareholder…
Vedanta and Cairn India remain fully committed to the growth strategy in Oil & Gas MBA, Ravva, Cambay - Low cost, high margin, resilient to price volatility World class Assets Rajasthan Core to the enlarged Group FY16 Focus:…
Diversified portfolio delivering stable margins through the cycle Diversified earnings (EBITDA contribution by commodity) Stable EBITDA margin % EBITDA margin H2 FY 2015 Cairn India Limited Vedanta Limited 90% Power 80% 3%…
Well invested assets providing strong near-term growth Vedanta: set to deliver near term growth as latent Total Production (copper equivalent kt)3 capacity ramps up 2,500 Zinc-Lead Silver Copper Contribution to copper % capex…
Transaction economics and process
Key transaction terms Cairn India Limited public shareholders will receive for each equity share held: o One equity share in Vedanta Limited o One Redeemable Preference Share (RPS) in Vedanta Limited with a face value of Rs. 10 o…
Simplified group structure Vedanta Limited and Vedanta plc to retain existing listings on respective exchanges o Vedanta plc: Premium LSE Vedanta plc (Listed on LSE) o Vedanta Limited: BSE, NSE, NYSE (ADRs) Pro-forma Vedanta…
Transaction governance Unanimously approved by the non-conflicted, independent Board members of Vedanta Limited, Cairn India and Vedanta plc o Independent sub-committee of non-conflicted Directors at both Cairn India Limited and…
Transaction approvals Stock exchange (NSE and BSE) and SEBI approval High Court and other regulatory approvals in India for Scheme of Arrangement Vedanta Limited and Cairn India Limited Shareholder approvals o Listing…
Summary
Summary Cairn India shareholders Vedanta Ltd & Vedanta plc shareholders Attractive transaction terms Further simplification of Group structure in line with stated Group strategy Exposure to Vedanta Limiteds world class Reinforces…
Unique investment proposition for Indias economic growth The only diversified Indian natural resources company of scale Uniquely positioned to develop Indias world-class endowment of natural resources Critical to the supply of…
Appendix
Transaction timetable Key Events Expected date BSE, NSE and SEBI approvals sought Q2 2015 BSE, NSE and SEBI approvals Q3 2015 Vedanta plc posting of UK Circular Q3 2015 Application to High Court in India Q3 2015 Vedanta plc…
Tier-1 Asset Portfolio FY2015 Positioning R&R Life1 Production Capacity2 Oil & Gas (Cairn India) 3 Top 20 global independent E&P; Platts 2013: Fastest growing 15 212kboepd 225 + kboepd energy company globally Zinc India (HZL)…
Pro forma 2015 financials Vedanta Limited consolidated Vedanta Limited consolidated (Rs. crore) pro-forma (Rs. crore) EBITDA 22,226 22,226 Operating profit 15,074 15,817 Profit after tax 10,183 10,927 Minority interest 5,127…
Conference call details There will be two conference calls : Sunday, 14 June 2015: 5:30 PM IST (1PM UK time, 8AM NY time) also available by webcast Monday, 15 June 2015: 5:30 PM IST (1PM UK time, 8AM NY time) The dial-in numbers for…
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