Recently, Volcan Investments, which currently holds about 67% of Vedanta, has made an offer of $10.89 or 825 pence per share for each share held in Vedanta.
The offer values Vedanta Resources’ total issued share capital at approximately $3.07bn and the issued share capital not currently owned by Volcan at about $1.028bn.
Additionally, shareholders of Vedanta will receive the dividend of $0.41 per Vedanta share in respect of the twelve months ended 31 March 2018, Vedanta said.
Upon evaluation, Vedanta’s independent committee has now recommended Volcan’s offer to Vedanta shareholders.
Vedanta Resources senior independent director Deepak Parekh said: “It is the view of the Independent Committee that this is an attractive offer for Independent Vedanta Shareholders.
“It secures delivery of future value today in cash, whilst providing shareholders with the ability, should they choose, to retain exposure to the Vedanta Group growth story by reinvesting all or part of their offer proceeds in Vedanta Limited.”
Volcan Investments expects the offer to simplify the corporate structure of Vedanta and its subsidiary undertakings which has been a key ongoing objective for the Vedanta Group.
Following the completion of the transaction, Volcan plans to delist Vedanta from the London Stock Exchange.
Vedanta Resources chairman Anil Agarwal said: “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.
“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.”
The offer is also expected to allow Vedanta shareholders to retain the ability to reinvest in Vedanta Limited shares.
