Vedanta Resources shareholders approve Cairn India share buyback

Mon Jan 13, 2014 7:49am EST

A bird flies by the Vedanta office building in Mumbai August 16, 2010. REUTERS/Danish Siddiqui

A bird flies by the Vedanta office building in Mumbai August 16, 2010.

Credit: Reuters/Danish Siddiqui

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(Reuters) - Mining conglomerate Vedanta Resources Plc (VED.L) said it received 99.89 percentage of votes in favor of a proposed share buyback worth up to 57.25 billion rupees ($924 million) by its Indian oil and gas unit Cairn India Ltd. (CAIL.NS)

London-listed Vedanta held an extraordinary shareholder meet on Monday to approve the buyback.

Cairn India, which announced the buyback in November, said the move would result in a maximum reduction of its equity capital by about 8.9 percent.

The buyback comes against a backdrop of strong cash flows generated by the company. Vedanta, controlled by billionaire Anil Agarwal, acquired a majority stake in Cairn India for almost $9 billion in 2011.

Britain's Cairn Energy (CNE.L) owns 10.3 percent of Cairn India but Vedanta said in November the buyback was not aimed at reducing that stake.

Shares in Vedanta, whose request to mine bauxite in the eastern state of Odisha was turned down by India's environment ministry last week, were up 0.6 percent at 877.5 pence on the London Stock Exchange at 1242 GMT.

($1=61.9450 Indian rupees)

(Reporting by Karen Rebelo in Bangalore; Editing by Greg Mahlich)

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