LONDON (Alliance News) - Vedanta Resources PLC confirmed Tuesday it has 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 share, equivalent to approximately 825 pence.
Vedanta shares were trading at 820.40p each on Tuesday, 5.3% higher.
The offer values Vedanta in total at USD3.07 billion, and the stake Volcan is now buying is worth around USD1.03 billion.
Under the offer, Vedanta 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.
It further provides certainty for investors, and will allow the company to simplify its structure, with this significantly including removing Vedanta from the London Stock Exchange, though it will retain an Indian listing.
Agarwal commented: "Following the possible offer announcement, we are pleased to announce this recommended offer for Vedanta Resources, which is a natural progression of our journey to simplify the Vedanta Group's corporate structure."
"We are very proud to have been the first Indian company to be listed on the London Stock Exchange in 2003, which was a major milestone for the Vedanta Group. The London listing has served us extremely well since that time," Agarwal continued.
"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."