The murmur in Scotland is getting interesting.
Which is, according to The Scotsman, a respected daily in the region, that Cairn Energy Plc, the former parent company of Cairn India, may get taken over by the Anil Agarwal-controlled Vedanta Resources Plc.
While advice has been aplenty on how Cairn India should use its massive cash hoard, till late Monday evening, foreign media have been speculating about a possible takeover of Cairn Energy.
Media reports said Vedanta might unveil one of its most ambitious takeover programmes after announcement of its fourth quarter results on Wednesday.
“This will definitely be a good move by the group as it will not only give a global footprint to Cairn India but also give it access to an efficient team of Cairn Energy,” said Gagan Dixit, senior oil and gas analyst with brokerage Quant.
Cairn Energy, which still holds 10.27% stake in Cairn India, currently has 40 licences in the UK and Norway of which 5 wells are planned to be drilled in 2013.
Also, it has acreages in Greenland where it has already drilled 8 wells, 6 operated blocks offshore Morocco, 4 blocks in offshore eastern Spain and smaller assets in Malta, Ireland, France, Albania and Nepal.
Experts say currently Cairn Energy is available at cheaper valuations compared with its assets base and cash reserves and it is the right time for any company to make a bid for the same.
“The current share price is less than net cash plus the shares in Cairn India. In other words, the exploration portfolio is in for free,” said an analyst quoted in one of the international media reports.
Cairn Energy’s current market capitalisation stands at $2.6 billion, while its cash reserves ($1.6 billion) and its 10% holding in Cairn India add up to over $2.63 billion.
“It makes sense for Vedanta’s long term strategy and for increasing Cairn India’s influence across the world’s E&P portfolio, however it could be a little bad for the minority shareholders of Cairn India, who had been expecting some payback finally this year,” said an analyst with a domestic brokerage.
The analysts’ fraternity had been proposing a possible buyback also of Cairn India’s share as a best possible way for utilisation of its cash, as they it would also be value accretive for the company.
Source:-http://www.dnaindia.com/money/report-vedanta-to-buy-cairn-energy-plc-1820363
Which is, according to The Scotsman, a respected daily in the region, that Cairn Energy Plc, the former parent company of Cairn India, may get taken over by the Anil Agarwal-controlled Vedanta Resources Plc.
While advice has been aplenty on how Cairn India should use its massive cash hoard, till late Monday evening, foreign media have been speculating about a possible takeover of Cairn Energy.
Media reports said Vedanta might unveil one of its most ambitious takeover programmes after announcement of its fourth quarter results on Wednesday.
“This will definitely be a good move by the group as it will not only give a global footprint to Cairn India but also give it access to an efficient team of Cairn Energy,” said Gagan Dixit, senior oil and gas analyst with brokerage Quant.
Cairn Energy, which still holds 10.27% stake in Cairn India, currently has 40 licences in the UK and Norway of which 5 wells are planned to be drilled in 2013.
Also, it has acreages in Greenland where it has already drilled 8 wells, 6 operated blocks offshore Morocco, 4 blocks in offshore eastern Spain and smaller assets in Malta, Ireland, France, Albania and Nepal.
Experts say currently Cairn Energy is available at cheaper valuations compared with its assets base and cash reserves and it is the right time for any company to make a bid for the same.
“The current share price is less than net cash plus the shares in Cairn India. In other words, the exploration portfolio is in for free,” said an analyst quoted in one of the international media reports.
Cairn Energy’s current market capitalisation stands at $2.6 billion, while its cash reserves ($1.6 billion) and its 10% holding in Cairn India add up to over $2.63 billion.
“It makes sense for Vedanta’s long term strategy and for increasing Cairn India’s influence across the world’s E&P portfolio, however it could be a little bad for the minority shareholders of Cairn India, who had been expecting some payback finally this year,” said an analyst with a domestic brokerage.
The analysts’ fraternity had been proposing a possible buyback also of Cairn India’s share as a best possible way for utilisation of its cash, as they it would also be value accretive for the company.
Source:-http://www.dnaindia.com/money/report-vedanta-to-buy-cairn-energy-plc-1820363
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