Edinburgh-based Cairn Energy sells Indian assets

Edinburgh-based Cairn Energy has agreed to dispose of assets in India, in a deal worth £5 billion.

India-focused miner, Vedanta Resources, will pay approximately £6 billion for a stake of between 51%-60% in Cairn India.

The deal will provide Vedanta with the ability to expand into oil and gas. Founder of the company, Anil Agarwal, has already said he is keen to tap into rising demand for energy in India.

“The proposed acquisition significantly enhances Vedanta’s position as a natural resources champion in India,” said Mr Agarwal.

Meanwhile, the deal will see shareholders of Cairn Energy receive a windfall, while the company will also be able to fund a new drilling programme off Greenland – believed to be its next big project.

The deal is subject to approval by the Indian Government.