New Delhi: The Boards of Cairn India and Vedanta Ltd will separately meet Sunday to discuss on the proposed merger of the firms.
The move will help billionaire Anil Agarwal-led group to merge its cash-rich oil firm Cairn India with its flagship metals and mining arm Vedanta Ltd in an all-share deal aimed at trimming the group's huge debt.
In separate BSE filings today, both companies informed about the meeting of their Boards.
Cairn India said: "A meeting of Board of Directors of the company will be held on June 14, 2015, inter alia, to consider and evaluate amalgamation of the company with Vedanta Ltd."
Vedanta Ltd in a filing said: "Board of Directors of the company will be held on June 14, 2015, inter alia, to consider and evaluate amalgamation of Cairn India with the company."
Meanwhile, as per sources, boards of the companies will consider 'reverse' merger aimed at cutting debt on Vedanta books as well as the share swap ratio and decide on the timelines for completion of the merger.
Vedanta in 2011 acquired majority control of Cairn India for USD 8.67 billion. It holds 59.9 percent in the oil explorer through its various units as of March 31.
As a prelude to the merger, Vedanta had this month bought some of the shares held by Agarwal's Twin Star Mauritius Holdings to raise its stake in Cairn India to 23.71 percent from 18.73 percent.
Twin Star now holds 34.43 percent in Cairn India.
Vedanta may at a later date merge its other cash cows, Hindustan Zinc Ltd and Bharat Aluminium, they said.
