Vedanta Resources Plc on Friday said it has entered into financing agreements with a consortium of banks for $ 6 billion to fund its proposed buyout of up to 60 per cent stake in Cairn India.
London-listed Vedanta Resources planned stake acquisition in Cairn India, which was announced in
August, is worth as much as $ 9.6 billion.
Announcing the financing agreements, Vedanta in a statement said the proposed 51-60 per cent stake acquisition in Cairn India would be worth about $ 8.5 - 9.6 billion.
Cairn India is part of Edinburgh-based Cairn Energy.
The bank consortium comprises Barclays Capital, Citi, Credit Suisse, Goldman Sachs, JP Morgan, Morgan Stanley, Royal Bank of Scotland and Standard Chartered, the statement said.
As part of the deal, Vedanta Resources would acquire 31-40 per cent stake in Cairn India while Vedanta's subsidiary Sesa Goa would buy 20 per cent stake.
"The financing announced today provides the group with funding flexibility. We are delighted to announce $ 6 billion of commitments from leading international banks...," Vedanta Chairman Anil Agarwal said.
The proposed deal is yet to receive necessary government and regulatory approvals.
Vedanta was to receive shareholders' nod for the transaction by October 30 but has not yet posted a notice for a shareholders meet.
Further, its mandatory open offer for additional 20 per cent stake in Cairn India is yet to get approval from market regulator SEBI.