Anil Agarwal faces shareholder resistance to $1 billion Vedanta bid  – by Ben Martin (Reuters U.S. – July 3, 2018)

https://www.reuters.com/

LONDON (Reuters) – Billionaire Anil Agarwal faces investor resistance to his $1 billion bid to buy out minority shareholders in Vedanta Resources (VED.L) and take the London-listed Indian miner private.

Vedanta, chaired by its 64-year-old founder Agarwal, on Monday announced that its independent board directors were prepared to back an 825 pence-a-share bid from Agarwal’s family trust, Volcan, to acquire the 33.5 percent of the company that it does not already own and delist the group.

Under the proposal, Volcan would spend 778 million pounds ($1 billion) buying out minority investors in a deal which would value Vedanta as a whole at about 2.35 billion pounds.

But a large minority shareholder in the mining group told Reuters the bid was too low and that his investment firm will raise concerns about the deal with Vedanta’s independent directors.

“We think that this offer is very opportunistic and massively undervalues Vedanta,” said the shareholder, who declined to be identified.

For the rest of this article: https://www.reuters.com/article/us-vedanta-m-a-shareholder/anil-agarwal-faces-shareholder-resistance-to-1-billion-vedanta-bid-idUSKBN1JT2D3

Comments are closed.