Business Case Studies, Financial Management & Corporate Finance Case Study, Indage Vintners Limited

Code : FCF0017

Year : 2011

Industry : Oil and Natural Gas

Region : Netherlands, Europe

Teaching Note:Not Available

Structured Assignment :Not Available

Abstract: The case study discusses the biggest deal in Indian oil sector in which miner and London listed company, Vedanta announced to acquire up to 60% stake in oil and gas exploration company Cairn India for $ 9.6 billion. As a part of the deal, Sesa Goa which is a subsidiary of Vedanta has to acquire 20% (part of 60% above) stake in Cairn India by making an open offer.

State-run company Oil and Natural Gas Corporation (ONGC), being a joint venture partner in eight out of ten oil blocks of Cairn India does not accept the deal and reserves pre-emption rights.

The case study gives an opportunity to discuss how stakes of many parties (directly or indirectly involved) are at stake in such a big deal. The case study also gives an opportunity to discuss corporate governance issues and governmental hurdles. The case study also questions on the synergies in such an expensive deal.

Case Studies on Best Practices - Vol. I

Case Studies on Aviation Industry