31st Jul 2018 12:45
LONDON (Alliance News) - Vedanta Resources PLC said Tuesday that its Indian unit Vedanta Ltd reported a strong rise in first quarter adjusted earnings and revenue on the back of record volumes in aluminium, higher production in oil and gas and supportive commodity prices.
The unit posted earnings before interest, taxes, depreciation and amortisation of INR65.29 billion, or roughly GBP723.1 million, for the three months to June-end, up 31% from INR49.85 billion. Profit after tax grew 1% year-on-year to INR22.48 billion.
First quarter net sales rose 15% to INR222.06 billion from INR193.42 billion. Zinc India mined met sales increase 7% to 212 kilo tonnes and average gross oil and gas production stood at 195,000 barrels of oil equivalent per day.
Earlier on Tuesday, London-listed parent Vedanta Resources reached an agreement for a cash offer for the rest of its shares from majority shareholder Volcan Investments Ltd.
Volcan, which already owns just under 67% of Vedanta and is controlled by Executive Chairman Anil Agarwal, has offered USD10.89 per Vedanta Resources share, equivalent to approximately 825 pence.
Vedanta Resources shares were trading at 817.60p each on Tuesday, up 4.9%.
The offer values Vedanta Resources in total at USD3.07 billion, and the stake Volcan is now buying is worth around USD1.03 billion.
Under the offer, Vedanta Resources shareholders will still be entitled to receive a dividend of 41 US dollar cents per share for the 12 months to March. Including this, the overall offer price is USD11.30 per share.
The Indian miner said the deal is an attractive one for shareholders, with it being an approximate premium of 28% to its closing price on June 29.
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