Vedanta promoters float open offer for 10% stake at Rs 160 per share

The promoters of Vedanta Limited have announced a voluntary open offer to acquire around 37.2 lakh equity shares of the company from public shareholders. This represents 10 per cent of entire equity stake of the company.

The promoter group that has floated the open offer includes Vedanta Resources Limited together with Twin Star Holdings Limited, Vedanta Holdings Mauritius Limited and Vedanta Holdings Mauritius II Limited.

"Voluntary open offer for acquisition of up to 371,750,500 equity shares, representing 10 per cent of the fully diluted voting share capital of Vedanta Limited from the Public Shareholders by Vedanta Resources Limited (acquirer) together with Twin Star Holdings Limited (PAC 1), Vedanta Holdings Mauritius Limited (PAC 2) and Vedanta Holdings Mauritius II Limited (PAC 3 together with PAC 1 and PAC 2 to be referred as PACs), in their capacity as the persons acting in concert with the acquirer," Vedanta Limited said in a regulatory filing on Saturday.

The open offer has been announced by JP Morgan as the manager of the offer on behalf of the promoter group.

The promoters are offering Rs 160 per share under the open offer, which is at a 12 per cent discount as compared to the current market price of Rs 178.85.

"Assuming full acceptance of the open offer, the total consideration payable by the acquirer and/or PAC(s) under the offer, in accordance with the SEBI (SAST) Regulations, will be Rs 5,948 crore," the company said in its filing.

Vednata Limited clarified that as on date of public announcement about the open offer, the Vedanta Resources (VRL) does not hold any of its equity shares directly. However, it added, VRL subsidiaries Finsider International Company Limited, Westglobe Limited, Welter Trading Limited, Twin Star Holdings and Vedanta Holdings Mauritius II hold 401,496,480 shares (10.80 per cent of voting share capital), 44,343,139 shares (1.19 per cent), 38,241,056 shares (1.03 per cent), 1,379,377,457 shares (37.11 per cent) and 185,000,000 shares (4.98 per cent), respectively.

Last year, Vedanta Resources raised its stake in Mumbai-listed unit Vedanta Ltd to 55.11 per cent by buying from open market shares worth Rs 2,959 crore. It bought 18.5 crore shares at a price of Rs 159.94 per share, raising stake in Vedanta Ltd to 55.11 per cent from the current 50.13 per cent.

Earlier on December 10, 2020, VRL sold $1 billion bonds at 13.875 per cent, one of the highest yields for a dollar bond in Asia this year. The bonds were issued by Vedanta Resources Finance II plc, a wholly-owned indirect subsidiary of the Vedanta promoter. The proceeds are to be used to finance a buyback offer for $670 million of notes maturing in June 2021. Any remaining proceeds will be used to service its existing debt and for acquisition of equity shares of its Indian subsidiaries.

Earlier in 2020, Vedanta Ltd's promoters failed to delist its scrip from Indian stock exchanges. The delisting failed due to insufficient number of shares being offered in the buyback proposal of VRL.

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