Anil Andarwal to offer $1 billion to buy full stake in Vedanta Resources

By Dale Benton
One of the largest resource companies in the world could go private, following an intention of its largest stakeholder to buy out a majority stake. Ve...

One of the largest resource companies in the world could go private, following an intention of its largest stakeholder to buy out a majority stake.

Vedanta Resources, one of the worlds largest diversified natural resources companies, has announced that its chairman has offered to pay $1 billion through a family trust.

Anil Agarwal, Chairman of Vedanta, will look to invest the money through his Volcan company, which currently holds around 67% of Vedanta.

Reuters has reported that an independent committee has evaluated the proposal and has unanimously recommended the offer to Vedanta’s shareholders.

Agarwal, in his offer, noted that while the company’s success in being the first Indian company to list on the London Stock Exchange back in 2003, Vedanta has reached a level of maturity that can see it soar to new highs as a private company.

“I am pleased to announce this initiative, which is a natural progression of our journey to simplify the Vedanta Group’s corporate structure,” said Angarwal in a statement.

Related stories:

AngloGold Ashanti CEO to become CEO of Vedanta Resources

Vedanta reveals innovative technology at Gamsberg mine

Vedanta to expand Lanjigarh Aluminium refinery


“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.

The deal sees Vedanta valued at close to $3.7 billion.



Featured Articles

China increases copper import pace, following price plummet

In August, China reached a 26% rise - representing a 100,000+ tonne increase - in copper imports year-on-year, largely driven by product price drops

Ford criticises “inefficient” government mining permissions

In a letter to the US Department of the Interior, the car giant Ford has asked the American government to speed up its current mining permission process

Aggreko and Labyrinth Resources’ sustainable power project

Labyrinth Resources has been working with Aggreko to complete a virtual pipeline power project, which is designed to aid the sustainable energy transition

Despite regional ban, crypto miner Canaan doubles profits

Digital Mining

The future of all-electric sustainable mining technologies


Anglo American first half earnings decline 28 percent

Supply Chain & Operations