By Richard Harkinson, research associate for London Mining Network Vedanta Resources to delist Indian unit: What it means for you Vedanta share prices have fallen more than 40% this year, giving the company a market value of about $4.4 billion. New Delhi: Billionaire Anil Agarwal-led Vedanta Resources plc will delist from the London Stock Exchange after promoter group made a cash offer to buyout about 33 percent of the public shareholding in the company. The actual offer does not represent an offer at a premium. What is the delisting process through reverse book building? Nobody in Volcan is independent. [3] ibid pp3, 8-9, compare with https://scroll.in/latest/880128/vedanta-founder-anil-agarwal-says-he-is-very-much-in-pain-because-of-thoothukudi-deaths There are two things to remember here. The Vedanta ‘independent directors’ were appointed so as to be assured of the benefits that the former can recommend to Vedanta’s independent shareholders. Both Vedanta Ltd and Zinc India [HZL] now have bigger capitalisations [value of shares] than Vedanta Resources plc. This was a concern to one of the world’s largest investment funds [the Norway pension fund] when it disinvested from Vedanta in 2007 [7]; It re-affirmed its position in 2016, because of “unacceptable risk your company will cause or contribute to severe environmental damage and serious or systematic human rights violations” [8] The 2016 accounts stated 85% of their assets as ‘investments in subsidiaries, and that their liabilities of USD 41 million were mainly loans, with a share capital of only USD 2million. Mining mogul Anil Agarwal plans to delist his flagship firm Vedanta Resources Plc from the London Stock Exchange (LSE) after buying out 33.5 per cent of non-promoter shareholders for about $1 billion. In addition, the shareholders will be entitled to receive the dividend of USD 0.41 per share in respect of the 12 months ended March 31, 2018. The reasons for this are linked both to its overstretch of its indebtedness [over USD 8 billion] to acquire more and more resources and its continual disastrous environmental management [see House without a Toilet, below] The parent company and the promoter of Vedanta, VRL, announced its decision of delisting the company from all the Indian stock exchanges, two years after it delisted from the London Stock Exchange (LSE). Nevetheless, Agarwal wants to avoid another reputational and financial fiasco over Vedanta’s complicity in the police’s shooting of peaceful demonstrators outside of Vedanta’s Tamil Nadu copper smelter at Thoothukudi [Tuticorin] in May this year. [8] see FV ibid pp 4 and p21 Earlier in 2018, Vedanta's promoters already delisted the VRL from LSE (London Stock Exchange). It essentially has eight subsidiaries. "Under the terms of the offer, Vedanta Mining mogul Anil Agarwal plans to delist his flagship firm Vedanta Resources Plc from the London Stock Exchange after buying out 33.5 per cent of non-promoter shareholders for about $1 billion. Mining mogul Anil Agarwal's family trust today made a firm USD 1 billion offer to buy 33.47 per cent non-promoter shares of Vedanta Resources in a deal that values the conglomerate at USD 3.07 billion. Vedanta Resources was the first Indian company to list in London in 2003 in a $644 million offering. Vedanta had on July 2 announced Agarwal's plans to delist the company. DETAILED FAQ's ON VEDANTA DELISTING KEY TERMS. Agarwal's Volcan Investments, which currently holds 66.53 per cent of Vedanta, made a cash offer for 825 pence a share. [3] [1] What is the delisting process through reverse book building? What was Agarwal’s offer? [5] https://www.theguardian.com/news/2018/sep/07/the-real-goldfinger-the-london-banker-who-broke-the-world The company said the delisting of Vedanta from the BSE and the … FV have excellent accounts of pollution problems from 2006, including the London litigation, and about how Vedanta have avoided taxes and royalties up to the London 2014 arbitration finding against them in respect of USD 140 million. In 2018, he successfully managed to delist Vedanta Resources, the parent company of Vedanta Ltd, from the London Stock Exchange. FV describe Vedanta’s 2003 IPO raising USD i billion which they used to increase their stakes in their Odisha alumina project and in HZL.. Ibid pp14-16 for their Orissa project, defeat of their claims to Niyamgiri through MOEF decisions and referenda results following Indian Supreme Court decisions Vedanta is currently trading at Rs. Reasons for delisting Vedanta Ltd. Volcan Investments Ltd, controlled by Agarwal as Executive Chairman, had announced a successful buyout of the company’s shares last month. When VRL was taken private on the London Stock Exchange, it was at a 27 per cent premium to its previous close. In 2018, Vedanta Resources delisted here itself from the stock exchange in London, where it had faced protests and legal action, and said buying out the London listing would simplify its structure and that the Indian market was deep enough to raise capital. The offer price for delisting was put at Rs 428.5 by promoter. Vedanta Resources and promoter group companies have moved a proposal to delist Vedanta Ltd from the Indian stock exchanges in a bid to simplify the group structure. The main reasons for these disinvestments are Vedanta’s persistent bad performance on environmental, social, and human rights issues, and its refusal to cooperate and improve on these issues.” Vedanta Resources owns 50.1 percent of Vedanta and has near 65 percent holding in Hindustan Zinc. On May 18, 2020 the board of Vedanta group The process for Vedanta Resources is transfer more debt to the India regulated Vedanta Ltd. London Mining Network, News and Prices. It would appear however that Vedanta’s continuing unwillingness to disclose the risks in their businesses is not challenged because of the very limited disclosure demands made by the various elements of the UK regulatory system [the private Stock Exchange . Terms and conditions, including restrictions on use and distribution apply. With all conditions met, Vedanta will now apply to have its share delisted from the London Stock Exchange with effect on October 1. 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