Vedanta raises stake in Cairn India to 28.5%

12th Jul 2011 09:19

Mining giant Vedanta has completed the first tranche of its purchase of Cairn Energy's Indian subsidiary, after acquiring an additional 10% stake for net proceeds of $1.36bn in cash.Following the purchase of 191,920,207 shares on Monday, Vedanta upped its stake in oil firm Cairn India to 28.5%.Cairn still remains the majority shareholder of Cairn India with a 52.2% shareholding. However, the second part of Vedanta's transaction - to raise its stake by a further 30% - is still to take place."The sale and purchase of a further 30% of the fully diluted share capital of Cairn India remains subject to the necessary consents and approvals from the Government of India," Cairn said.Shares in both resources stocks dropped lower on Tuesday, with Cairn Energy trading 3% lower at 387.7p and Vedanta falling 2.72% to 1,858p as of 09:25.A tumble in both oil and metals prices is thought to have further fuelled the decline.BC