Vedanta Resources to delist from London Stock Exchange; Anil Agarwal’s family trust to buy out 33% public shareholding
Vedanta Resources was the first Indian company to be listed on the London Stock Exchange in 2003
New Delhi: Billionaire Anil Agarwal-led Vedanta Resources plc will delist from the London Stock Exchange after promoter group made a cash offer to buyout about 33 percent of the public shareholding in the company.
Volcan, the investment arm of Agarwal family, made an offer to buy public float at a price of 825 pence per share, 27.6 percent higher than closing of of 647 pence on 29 June, the company said in a filing to the London Stock Exchange.
"In addition to the offer price, shareholders will also be entitled to receive the previously announced dividend of $0.41 per Vedanta share in respect of the twelve months ended 31 March, 2018, which when taken together with the offer price represents a total value of 856 pence per share," it said.
The move is to simplify the corporate structure of Vendata and its subsidiaries, it said.
Agarwal said Vedanta was the first Indian company to be listed on the London Stock Exchange in 2003.
"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," he said.
Without disclosing the beneficiaries, billionaire Anil Agarwal-promoted Vedanta in its annual report for 2011-12 stated that it paid USD 2.01 million to political parties in 2011-12.
Mining conglomerate Vedanta Resources plunged into a USD 217 million loss for the six months ended September 30 amid lower metal prices and currency losses.