Vedanta Resources’existing 55 per cent holding in Vedanta is positioned as collateral
Anil Agarwal, billionaire founding father of the Vedanta Group, has pledged his stake in a cash-rich Indian unit to assist sweeten phrases for a takeover try that is key to his debt-repayment plans. The London-based Vedanta Resources will now search to purchase 17.51 per cent of Mumbai-listed Vedanta at Rs 235 ($3.24) a share, it mentioned in an trade submitting Tuesday. That’s up from the earlier 10 per cent at Rs 160 apiece.
Vedanta Resources’Â present 55 per cent holding in Vedanta is positioned as collateral underneath situations of a greenback bond sale this month that can go towards partly funding the open supply.
The revised supply represents a small premium to Tuesday’s Rs 226.5 closing value and a profitable transaction will take Agarwal nearer to full management of Vedanta. Shareholders had already rejected one takeover bid by Agarwal, whose private holding firm has amassed about $7 billion of debt that could possibly be pared with the assistance of Vedanta’s cash-rich steadiness sheet.
If Vedanta have been to just accept bids for the whole 651 million shares, the consideration for the deal could be about Rs 153 billion versus Rs 59.48 billion anticipated within the January supply.
The supply runs March 23 to April 7, the corporate mentioned within the assertion.
Citicorp International , performing as trustee for the holders of the greenback bonds, positioned restrictions on Vedanta Resources’s shareholding of the Indian unit, in keeping with a separate trade submitting.
