Sudhir Mathur On Vedanta-Cairn Merger: We Will Protect Cairn India Brand
Mathur says the merger of Vedanta Limited and Cairn India was approved by all shareholders in September 2016 and is expected to be completed in the first quarter of 2017
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Sudhir Mathur, acting CEO of Cairn India Limited, says the company plans to retain its proven management team and decision-making framework to protect the Cairn India brand after the merger of Vedanta Limited and Cairn India
With a line-up of 30,000 crores in the next three years to add 1 lakh barrels per day of oil, the momentum has been kept high as the company got the much needed nod this month from the National Company Law Tribunal on the proposed merger of Vedanta Limited and Cairn India. Mathur spells out how the merger holds significant importance for both the companies and the stakeholders.
Mathur says that the merger of Vedanta Limited and Cairn India was approved by all sets of shareholders in September 2016 and is expected to be completed in the first quarter of CY2017.
He goes on to say how this merger would be of a great significance of both the companies as the earnings would be de-risked through increased diversification for Cairn India shareholders, offering exposure to a larger, more resilient and more diversified resource player.
"There would be stable cash flow supporting investment and dividends through the cycle, driving long term value and would offer the shareholders an exposure to Vedanta Limited's Tier-I, structurally low cost, longer-life assets, including a best in class zinc platform, which have significant latent capacity ramping up, unlocking significant value", he says.
Mathur elaborated that being a part of a larger entity will allow Cairn India to benefit from increased economies of scale and an improved free float and trading liquidity. The company would not be compromising with the brand and protecting the same as it plans to retain its proven management team and the decision making framework.
He also cleared that Cairn India's shareholders will be able to partake in Vedanta Limited's previously announced $1.3 billion cost saving program.
The company recently roped in global oil and gas leaders- Melody Meyer, Former President, Asia-Pacific, Chevron Energy; and Atul Gupta, a sector professional with more than 36 years of rich and varied global experience.
"These experts will help us to identify the right projects, drive stakeholder relationships, and expedite the execution of our existing projects. With this, we expect our operating cost to come down in the coming days", adds Mathur.