Anil Agarwal, billionaire founder of the Vedanta Group, has pledged his stake in a cash-rich Indian unit to help sweeten terms for a takeover attempt that’s key to his debt-repayment plans. London-based Vedanta Resources Ltd. will now seek to buy 17.51% of Mumbai-listed Vedanta Ltd. at 235 rupees ($3.24) a share, it said in an exchange filing Tuesday. That’s up from the previous 10% at 160 rupees apiece. Vedanta Resources’s existing 55% holding in Vedanta Ltd. is placed as collateral under conditions of a dollar bond sale this month that will go toward partly funding the open offer. The revised offer represents a small premium to Tuesday’s 226.5 rupees closing price and a successful transaction will take Agarwal closer to full control of Vedanta Ltd. Shareholders had already rejected one takeover bid by Agarwal, whose personal holding company has amassed about $7 billion of debt that could be pared with the help of Vedanta Ltd.’s cash-rich balance sheet.
Vedanta Promoters Pledge Their Entire Stake To Raise Funds
Mar 16 2021, 11:40 PM
March 16 2021, 11:40 PM
March 16 2021, 11:40 PM
Promoter entities of Vedanta Ltd. have pledged their entire stake in the mining firm to raise funds for the open offer for shares in the Indian unit and to service debt.The parent firm Vedanta Resources, led by billionaire Anil Agarwal, notified the exchanges on March 16 of the creation of encumbrance over the shares in Vedanta Ltd. held by five of its subsidiaries.The subsidiaries for which encumbrance has been created are:Finsider .
Promoter entities of Vedanta Ltd. have pledged their entire stake in the mining firm to raise funds for the open offer for shares in the Indian unit and to service debt.
Vedanta Ltd s promoters cannot sell or create any security on shares they hold in the group as part of the terms attached to the recent USD 1.4 billion fund raising conditions which technically fall within the definition of encumbrance but no pledge on shares has been created, the company said on Wednesday.
Vedanta had on Tuesday informed stock exchanges about its promoters raising USD 1 billion debt by issuing equivalent notes to Citicorp International Ltd and another USD 400 million in notes to an entity under Oaktree Capital Group. The notes in both cases will be partly secured by shares in the Mumbai-listed unit Vedanta Ltd.
Dow rises for the fourth time in five days, ekes out record closing high (SPY +0.1%). Dollar dumps, Bitcoin jumps, and pending home sales slide.
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