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VEDL - Vedanta News Story

₹130.95 -3.4  -2.5%

Last Trade - 18/09/20

Sector
Basic Materials
Size
Large Cap
Market Cap £5.08bn
Enterprise Value £9.00bn
Revenue £8.85bn
Position in Universe 64th / 3004

BREAKINGVIEWS-Anil Agarwal’s Vedanta antics are self-defeating

Fri 1st February, 2019 10:42am
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own.) By George Hay LONDON, Feb 1 (Reuters Breakingviews) - A unit of the Indian tycoon’s mining company is buying some of his personal holding in Anglo American. Minority shareholders wiped off one-fifth of the company’s value. Given any swoop by Agarwal on Anglo may require winning minorities over, it’s an odd move. Full view will be published shortly. On Twitter https://twitter.com/gfhay CONTEXT NEWS - Vedanta Ltd shares fell sharply on Feb. 1 after the Indian mining group disclosed a unit of the company has made an investment in fellow miner Anglo American. The seller is the company’s founder Anil Agarwal. - Mumbai-listed Vedanta said on Jan. 31 that its foreign unit Cairn India Holdings had paid a “part sum” of $200 million to buy a position in Anglo from Agarwal’s Volcan Investments, Vedanta’s ultimate parent company, as a part of its "cash management activities". - The transaction, which took place during the quarter ended Dec. 31, bought what the statement described as an economic interest in Volcan’s structured investment in Anglo. The ownership of the underlying shares and the associated voting interest remains with Volcan, it said. - Volcan currently controls around 20 percent of Anglo’s shares via bonds that convert into equity in 2020. - Vedanta added that Cairn’s investment had performed positively on an unrealised mark-to-market basis. - Vedanta shares were down 17 percent as of 0950 GMT on Feb. 1. - For previous columns by the author, Reuters customers can click on HAY/ - SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS http://bit.ly/BVsubscribe <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ India's Vedanta sinks 20 pct to 2-1/2-year low urn:newsml:reuters.com:*:nL3N1ZW276 BREAKINGVIEWS-Vedanta digs just deep enough to leave London urn:newsml:reuters.com:*:nL8N1TY1KO ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Una Galani and Bob Cervi) ((george.hay@thomsonreuters.com; Reuters Messaging: george.hay.thomsonreuters.com@reuters.net))
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