Vedanta Resources shows interest to buy 10 pc stake of Indian unit

After a failed delisting and buying shares in bulk deals, Anil Agarwal-led Vedanta Resources Plc has launched a voluntary open offer to acquire up to 10 per cent stake in the Indian firm Vedanta Ltd. The parent has offered to buy up to 37.17 crore shares from public shareholders of Vedanta at Rs 160 a piece, according to an exchange filing. If it is successful, that will cost Rs 5,948 crore.

The price announced on Sunday is a 12 per cent discount to Friday''s closing of  Rs 182.05. Vedanta shares were nearly 3 per cent down on Monday and were trading around Rs 179 at 15.00 Hrs.

In October last year, Vedanta Resources had failed to garner the required number of shares to delist its Indian arm at the offer price of Rs 87.5 apiece. Last month, promoters had increased their stake from 50.14 per cent to 55.04 per cent through block deals totalling Rs 2,959 crore.

As per Sebi's takeover code, promoters holding more than 25 per cent but less than 75 per cent shares can buy up to 5 per cent through creeping acquisition in one financial year.

Any acquisition of shares beyond 5 per cent may trigger an open offer.

The promoters can after a one-year of cooling-off period, can take another shot at delisting that will simplify the group's complex shareholding structure and allow it better access to consolidated cash while avoiding leakage during dividend distributions.

"The Acquirer (Vedanta Resources) together with PACs is making a voluntary open offer for the acquisition of up to 37,17,50,500 equity shares, representing 10 per cent of the fully diluted voting share capital of the target company (Vedanta Ltd)," the filing said.

At the time of raising its stake last month, Vedanta Resources had said the move was aimed at simplifying the group structure.