Cairn-Vedanta merged entity to be ready by Dec: Anil Agarwal

Shareholders of Vedanta Plc have approved the merger of Cairn India and Vedanta India with 100 percent nod. and it is in the best interest of all the shareholder to approve the deal, said Anil Agarwal, Chairman, Vedanta Group.In an interview with CNBC-TV18, Anil Agarwal, Chairman, Vedanta Group, said the merged entity would be ready by December this year."The merger will lead to creating a large, well-diversified natural resource company," he said.He added that the deal will be beneficial for the Cairn shareholders.Below is the verbatim transcript of Anil Agarwal’s interview to Kritika Saxena and Surabhi Upadhyay on CNBC-TV18.Kritika: The EGM of Vedanta Resources has cleared the deal. How confident are you that the Cairn shareholders will also give their blessings?A: Vedanta PLC has 100 percent, 100 percent is very rare and has approved this and we have - it is very advantageous to Cairn India shareholders to go with this deal because it will be advantageous for them, risk adverse is diversified with the oil price. This is the best thing to be done to create a natural resource company and as you have seen the share price has appreciated on this move and we believe it is going to happen. In just few days it is going to happen next week. So, this week and next week I hope everything work out well.Kritika: Can you walk us through was discussed in the EGM, what was discussed with the shareholders of Vedanta Resources today?A: Yes, they all understand to create a natural diversified company out of India as you have a BHP, you have Anglo and it was absolutely they understand that such a large country to have a natural resource company and merging these company is the best thing for the two shareholders. So, this was discussed and it is 100 percent not 99 percent, 100 percent shareholders has come forward and has approved this and now the Cairn India - one is on 8th and one is on 12. So, this - I believe and this is in the interest of all shareholders to go ahead and create this.Kritika: Now that you are preparing for the Cairn EGM have there been any concerns raised by the shareholders, you have been talking to the large shareholders. Some of the larger ones including Life Insurance Corporation of India (LIC) and Cairn PLC. Any kind of concerns that have been raised so far by the larger shareholders?A: This is a very open and transparent process. We have said what is the rationale about it and they all appreciate and they all believe that the value will be created and this is the best thing to be done and that is what is what we have done and we have shown them how the market has moved up because on the basis of how this two company will merge that is what the market is considering and at the same time the risk is averse where you have a copper asset, you have an aluminium asset, you have zinc asset and then you have oil and gas put together is the best thing to be done. So, I believe this is the best thing for both the shareholders.Kritika: That is very important. You are saying that the shareholders of Cairn India as well are onboard with the deal?A: This is a vote needs to take place as has happened for the Vedanta PLC and thus what believe the process has to take place and we have done and I believe this is the best thing to be done to happen for the Cairn India shareholder also.Kritika: We were talking on the channel and assessing the deal as you are pointing out this is a broader vision that you have for the merged entity. What has been the conversation so far with LIC and Cairn Plc specifically, because their nod and their blessing will of course be crucial for the deal to eventually go through?A: We all want to create a shareholder value. India is a growing country, there is so much happening in India, this is one of the small thing is happening, lot more has to happen and they all believe in this process to create more value, to create more production, to have stronger balance sheet this is a right thing to be done, which we have presented and they can see clearly the value right there that, we have given a tremendous value for a Cairn India shareholder and it is in the interest of the country, it is in the interest of the shareholder to go ahead, that’s what we can do. We can’t take them anything in advance what they want to do.Kritika: Was there any concern raised today by the shareholder with respect to ongoing litigation or do you foresee any concerns by the shareholders of Cairn India?A: You have asked me four times and I have said the same thing that this what we are presenting and this is what we are saying and this is what is the position and I believe what has happened today should happen to the Cairn India shareholder also.Kritika: The broader vision that you have is to create a merged entity, a conglomerate that consolidates a larger behemoth as you were pointing out. What is the timeline that you are looking at, by when you would be ready with the merged entity?A: Once the voting is take place then some process has to take place and it should be ready in couple of months.Kritika: By the end of this calendar year, would you say that?A: Should be.Kritika: What’s the next step for you, now that you are very close to completing the merger, it has been about a year of preparation, it has been a year of consolidating everything, what is the next step for you?A: You are working in a developing nation it takes time. You had to have the patience. You just can’t be impatient that it has to be done today. Give few more years things will be more faster, but we understand it has taken little bit longer time, but it is on the right track.Kritika: What’s the next step, now that the merger almost about to be completed, what is the next step once the merger is completed?A: Once the shareholder approve, the court proceeding will be in place, the SEBI has to approve. That is some normal process which will take couple of month.