Sesa Goa, Sterlite Combine to Reduce Debt of Parent Vedanta

Billionaire Anil Agarwal's Vedanta Resources Plc will combine its publicly-traded Indian units in a new company, cutting debt after its $8.67 billion purchase of oil producer Cairn India Ltd.

Sesa Goa Ltd., India’s largest iron-ore exporter, will absorb Sterlite Industries (India) Ltd. in an all-share deal, London-based Vedanta said Feb. 25 in a statement. Investors will get three Sesa Goa shares for five shares of Sterlite. Vedanta will transfer for $1 its 38.8 percent holding in Cairn India, including a debt of $5.9 billion, to Sesa Sterlite, the new company that will hold 58.9 percent of Cairn India.