Vedanta promoters pledge shares to raise £600m
Vedanta Resources chairman Anil Agarwal (Photo by RODGER BOSCH/AFP via Getty Images)
HOLDING companies of Vedanta Ltd have raised $800 million (£600m) by pledging shares in the company, according to a stock exchange filing.
Promoter group firms pledged 2.42 billion shares or 65.18 per cent shareholding in Vedanta Ltd in three facility agreements to raise the money, the natural resources company said.
In the first financing deal, Twin Star Holdings Ltd entered into an agreement with Standard Chartered Bank, London, to avail $400m (£300m).
In the second, Vedanta Netherlands Investments BV secured $150m (£112) from the same bank.
Vedanta Resources raised $250m (£187m) from Standard Chartered Bank, Hong Kong.
“The borrowers and guarantors in the aforesaid facility agreements are part of the promoter and promoter group,” Vedanta said in the filing.
As part of the pledge, the promoter group entities are not permitted to create any encumbrance over any assets held by them unless certain conditions are fulfilled.
Vedanta Resources and its subsidiaries are also required to retain control over Vedanta Ltd or own more than 50 per cent of the issued equity share capital.
Madison Pacific Trust, in a separate statement, said Vedanta Netherlands Investment BV and Twinstar Holdings have acquired 1.71 per cent and 2.80 per cent of the equity share capital of Vedanta.
Earlier this week, they were looking to purchase up to 170m equity shares of Vedanta Ltd at an indicative price of Rs 350 (£3.5) per share, valued at Rs 59.50 bn (£595.8m).
This comes after the mining company, led by billionaire businessman Anil Agarwal, announced on November 17 that it is considering plans for a complete overhaul of its corporate structure.
The firm is evaluating all options including demergers, spin-offs and strategic partnerships, and is looking at listing its aluminium, iron and steel, and oil and gas verticals as separate entities.
A committee of directors has been constituted to evaluate and recommend such options and alternatives to the board.