2nd Jul 2018 08:42
LONDON (Alliance News) - Shares in Vedanta Resources PLC rose early Monday after the company's majority shareholder and Chairman Anil Agarwal made an offer to acquire the remaining stake in the Indian miner for GBP778 million.
London listed shares in Vedanta were trading up 26% at 816.60 pence on Monday morning.
Volcan Investments Ltd, Agarwal's family trust which currently owns 66.53% stake in Vedanta, reached a conditional agreement to acquire the remaining stake for 825p per Vedanta share in cash, valuing the company's total share capital at GBP2.33 billion. The offer price represents a 28% premium to Vedanta's 647p closing share price on Friday.
Under the agreement, Vedanta shareholders will also receive previously announced dividend of USD0.41 per share. Including the dividend payment, the total offer is valued at 856p per Vedanta share.
Volcan Investments intends to cancel Vedanta share trading on the London Stock Exchange's main market following completion of the deal.
"I am pleased to announce this initiative, which is a natural progression of our journey to simplify the Vedanta Group's corporate structure. The London listing has served us extremely well since that time. However, given the subsequent growth of our underlying businesses and the maturity of the Indian capital markets, together with related feedback from our shareholders and other stakeholders, we have concluded that a separate London listing is no longer necessary to achieve the Vedanta Group's strategic objectives. In taking this important step towards greater group simplification, we wanted to ensure that the independent shareholders of Vedanta Resources PLC were provided with the opportunity to exit on attractive terms, and I believe this possible offer will deliver on that objective," Agarwal said.
Under UK takeover rules, Volcan Investments is required to make a firm offer for Vedanta by July 30.
Related Shares:
Vedanta Resources