London, Dec. 2 (PTI): Anil Agarwal-led Vedanta Resources Plc today said it would buy back shares worth $250 million, representing a 10 per cent stake in the company, from the open market.

“Given the recent share price decline and current market conditions, the board of Vedanta believes that such a buyback programme will be value-enhancing for its shareholders,” the company said in a filing to the London Stock Exchange.

Vedanta will use only a small part of its substantial cash balances of over $5 billion, and the group will remain well-capitalised to fund its organic growth programme.

The global metal and mining major also said that its board would continue to seek opportunities to consolidate the minority shareholding within the group, to create more wealth and value for its investors.

Vedanta’s major shareholder, Volcan Investments Ltd, will not participate in the buyback.

Last month, Vedanta said it might reduce its investment in India by $5.1 billion and resort to a cut in production in response to falling metal prices.