Mining mogul Anil Agarwal plans to delist his flagship firm Vedanta Resources Plc from the London Stock Exchange after buying out 33.5 per cent of non-promoter shareholders for about USD 1 billion.
Agarwal’s Volcan Investments Ltd, which currently holds 66.53 per cent of Vedanta, made a cash offer for 825 pence a share, a 14 per cent premium to company’s three-month volume weighted average price.
Vedanta Resources in a statement said it will recommend acceptance of the offer by the shareholders, who would also be entitled to a previously announced dividend of USD 0.41 per share.
The company no longer sees the London listing as necessary to access capital and the deal will simplify Vedanta’s corporate structure, it said.
The move comes weeks after the killing of 13 protesters in police firing at the firm’s copper smelter plant in Tamil Nadu last month that led to political opposition to the company in the UK and drop in its share price.
Volcan is a holding company wholly owned by the Anil Agarwal discretionary trust.
Agarwal is also Anglo American’s biggest shareholder with a nearly 20 per cent stake through Volcan.
After delisting of Vedanta Resources, Agarwal would have just two listed companies in India – Vedanta Ltd which houses his sprawling copper, silver, lead, iron ore, power, aluminum mining and oil and gas, and Hindustan Zinc Ltd.
Vedanta Resources owns 50.1 per cent of Vedanta Ltd and has near 65 per cent holding in Hindustan Zinc.
It also owns 79.4 per cent of Konkona Copper Mines in Zambia, Africa.
The delisting will take 2-3 months as it will have to make a firm offer in 28 days.
Vedanta said an independent committee, formed to review and evaluate the proposal, has indicated to Volcan Investments that it supports the offer and intends to recommend a firm offer to the shareholders.
Agarwal said Vedanta was the first Indian company to be listed on the London Stock Exchange in 2003.
