Vedanta subsidiary Cairn says buyout 'on track'

Vedanta Resources subsidiary Cairn India posted first quarter results showing growth in quarterly earnings led by improved cost performance and steadying oil prices and said its proposed buyout by Vedanta was "on track".

Vedanta last month announced it would offer one share in its Mumbai-listed Indian holding company, Vedanta Ltd, for each share held by minority shareholders in Cairn India as a means of merging the two companies.

Cairn India chief executive Mayank Ashar said the buyout by Vedanta Ltd was "on track" and brushed off demands from some minority shareholders for a higher price tag.

Ashar said the company had received a "variety of perspectives" on the deal, most of which were positive, Reuters reported, and dismissed concerns that opposing investors could derail the deal.

"At the end of the day, the shareholders will make up their mind. What I saw was fairly positive reaction to the merger," Ashar said, when asked about shareholder concerns on the deal.

Overall gross production volume of 209,738 boepd across Rajasthan, Ravva and Cambay assets, down from daily production at 215,553 boepd in the fourth quarter of 2014.

With a 16% improvement in crude price realisation on the preceding quarter, earnings before interest, tax, depreciation and amortisation (EBITDA) rose 79% on the last quarter of previous year to the equivalent of $205m.

Ashar said: "Our strategic focus is to maintain healthy cash flows post capex, fuel future growth through investments and use technology to our advantage to drive value in what we do."