In an exchange filing, Cairn said that in a court-convened meeting, 65.41 percent of shareholders present, representing 92.86 percent in value, voted in favour of the merger. The scheme has also been approved by a majority of the minority shareholders.
The public shareholders of the company have casted 72.43 percent of votes (in value) in favour of the resolution.
Speaking to CNBC-TV18 Rakesh Arora, an Independent Analyst, said that it is a long-term positive for Vedanta. “They have a chance to rectify the balance sheet.”
He believes Vedanta could be debt-free in two years. He adds that it is not a question of EPS upgrade or downgrade, but it is more to do with the quality of balance sheet becoming better.
Vedanta is into a lot businesses. Zinc, copper, iron ore, among others. Arora says shareholders with a long-term view wouldn’t be looking at individual commodities. “Cairn India is a single asset, one location, it is good for a punter who is betting on commodities for the short-term.”
He also spoke on Tata Steel numbers, saying that the last quarter was one of the best quarters for steel prices. “Raw material prices were lower, and finished product prices ran up. Now, raw materials are catching up. Ebitda margins are peaking.”
Going forward, he expects we will return to slightly low numbers.
Transcript to follow…