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VEDL - Vedanta News Story

₹123.9 0.5  0.4%

Last Trade - 9:25am

Basic Materials
Large Cap
Market Cap £4.69bn
Enterprise Value £7.50bn
Revenue £8.67bn
Position in Universe 64th / 3000

UPDATE 1-Vedanta Resources to take Indian unit private as virus crisis deepens

Tue 12th May, 2020 5:39pm
(Adds details, chairman quote, background)
    May 12 (Reuters) - Miner Vedanta Resources Limited on
Tuesday confirmed that it would take its Indian unit Vedanta Ltd
 VDAN.NS  private, as it looks to accelerate simplification of
its corporate structure amid the coronavirus crisis.
    The company said it will delist the unit from all stock
exchanges and was willing to accept shares tendered in the offer
at 87.5 Indian rupees ($1.16) per equity share, a premium of
9.9% on Monday's closing stock price, but a discount of 1.7%
over Tuesday's closing.
    "Due to the impact of Covid 19 pandemic, we have accelerated
the strategy in this challenging environment to ensure support
for meaningful deleveraging and to enable us to continue to
invest in the growth of the business," Vedanta Group Chairman
Anil Agarwal said.
    Bloomberg had earlier reported
 that billionaire Agarwal was exploring a potential deal to take
Vedanta Ltd private.
    The Indian unit's delisting will provide Vedanta Resources,
which owns a 36.8% stake in the unit, with enhanced operational
and financial flexibility, as well as "transform" its credit
profile, Vedanta Resources said. 
    The delisting is also expected to support an accelerated
debt reduction program in the medium term.
    In 2018, Vedanta Resources delisted
 itself from the stock exchange in London, where it had faced
protests and legal action, and said buying out the London
listing would simplify its structure and that the Indian market
was deep enough to raise capital.
    Hindustan Zinc  HZNC.NS  will continue to be listed in
India, said Vedanta Resources, which owns a 64.9% stake in the
($1 = 75.1350 Indian rupees)

 (Reporting by Tanishaa Nadkar in Bengaluru; Editing by Shinjini
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