Phosphoric Acid, Phosphates & Fertilizers Experts

Anil Agarwal succeeds with Vedanta Resources buyout

Mumbai: Anil Agarwal, Vedanta Resources chairman is set to take the LSE-listed company private from October 1, after its family owned trust Volcan Investments announced on Monday that it has got a green signal from minority holders of 26% of the shares.

The $1.1 billion offer to buy out the London-listed natural resources company by the trust has now received approval to hold 92.31% of Vedanta’s shares and the offer remains open for acceptance from shareholders until notified further, said the announcement.

The trust led by Agarwal had made an announcement to buy out its remaining 33.5% stake in the London-listed company on July 2 in order to simplify the group’s structure. The delisting will narrow the group’s number of listed entities to two- Vedanta Limited and Hindustan Zinc; both listed in India.

Abinding offer was made subsequently on July 31, according to which shareholders of Vedanta will receive $10.89 per share in cash for each Vedanta share.

Additionally, shareholders are also entitled to receive dividend of $0.41per share in respect of the 12 months ended March, 2018.

The offer price values the total issued share capital of Vedanta at 2,325 million pounds and the issued share capital that is currently not owned by Volcan at 778 million pounds. It also represents a 27.6% premium compared to the closing share price of Vedanta on June 29, 2018, at 647 pence. Adding the dividend, the total offer value of 856 pence will reflect a premium of approximately 32.4% as compared to the last closing price.

According to experts watching the industry, the move to delist the company that was the first to be listed on LSE in 2003, stemmed from restructuring back home after its oil producing arm Cairn Energy was merged with Vedanta Ltd. Some had debated it was due to rising activists’ pressure on the stock after the killing of 13 protesters at Tuticorin where Vedanta has its copper plant in India. However, Agarwal had denied such a possibility.

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