London-listed Mining Group Vedanta Plc acquired 10.5% Stake in Cairn India from Patronas

London-listed mining group Vedanta Plc on 19 April 2011 acquired 10.5 per cent stake in Cairn India from Malaysia's state oil firm Petroliam Nasional Bhd (Petronas). Sesa Goa, a unit of Vedanta, bought 200 million equity shares at Rs 331 a piece. With the selling off of shares Petronas totally exited Cairn India. Petronas sold its entire 14.9 per cent stake in Cairn India with domestic and foreign institutions buying the rest.

The tender price for the share sale was lower than Rs 355 a share that Vedanta Group offered for buying 20 per cent stake in Cairn India through an open offer.

 Vedanta group in August 2010 proposed to buy up to 51 per cent share in Cairn India from Edinburgh-based Cairn Energy Plc for as much as USD 8.48 billion. Vedanta Group had offered to buy the shares for Rs 405 per share. Subsequent to the offer Vedanta group firm Sesa Goa announced an open offer to buy an additional 20 per cent stake in Cairn India at Rs 355 a piece.
Petronas had invested USD 800 million to take a little less than 10 per cent stake in Cairn India when the company got listen in the year 2006. Petronas had later raised the stake to 14.9 per cent. However had lately Petronas expressed its frustration as the Indian government delayed approvals to Cairn India to raise output.

Cairn India is producing 125,000 barrels of crude oil per day from the Mangala oilfield in the prolific Rajasthan block.