Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Aviva Investors opposes Vedanta takeover bid for Cairn India

India news
Billionaire Anil Agarwal’s Vedanta to absorb Cairn India

Fund firm Aviva Investors said on Wednesday it opposed a $2.3 billion plan by Vedanta to buy out minority shareholders in Cairn India as the deal failed to deliver sufficient value.

Aviva’s UK equity team has a 4.3 percent stake in Cairn Energy, the original owner of Cairn India and still its largest minority shareholder. Its emerging market equity teams, meanwhile, both own stakes in Cairn India, it said.

“As long-term investors, we believe that the timing of this deal is opportunistic and materially undervalues Cairn India, its current reserves and future prospects,” Aviva Investors, part of insurer Aviva, said in a statement.

It said a low oil price, tax litigation and uncertainty over the long-term ownership structure of Cairn India had all weighed on the share price.

“We are also concerned there is a risk of the Vedanta Group misallocating capital should its integration of Cairn India prove successful,” it said.

“With high levels of debt and an aggressive capital expenditure programme, we fear the Vedanta Group would prioritise its immediate needs over the long-term potential we believe exists at Cairn India.”

Media reports over the past month have said Cairn Energy and India’s state-owned Life Insurance, which together hold more than 19 percent of Cairn India, disagreed with Vedanta on the deal’s valuation and could vote against the buyout.

Vedanta, the Mumbai-based subsidiary of London-listed Vedanta Resources, has maintained that its offer is fair and that it was engaging with minority shareholders.

“The vote on the merger will take place in the last quarter of this year and until then we will continue to engage with all shareholders,” Vedanta said in a statement on Thursday, in response to Aviva’s opposition.

Recommended for you

More from Energy Voice

Latest Posts