London/New Delhi: Vedanta Resources' chairman Anil Agarwal will take the London-listed miner private on October 1, his family trust said on Monday, a step seen by some in the industry as a prelude to a potentially broader deal with bigger miner Anglo American.
Volcan Investments, which held about two-thirds of Vedanta's London-listed arm before it announced a roughly $1-billion buyout offer in July, said holders of 26 per cent of shares had agreed to sell.
Volcan now holds or has received acceptances for 92.31 per cent of Vedanta's shares, it said, adding the offer would remain open for acceptances from shareholders until further notice.
"The board of directors of Volcan Investments Ltd (Volcan Investments) is pleased to announce that the recommended cash offer by Volcan Investments for Vedanta Resources has become unconditional in all respects," Volcan Investments said in a regulatory filing to the London Stock Exchange on Monday.
"Vedanta Resources will apply to the London Stock Exchange and the UKLA (UK Listing Authority) to cancel the admission of Vedanta shares to trading on the LSE's main market for listed securities. This delisting is expected to occur on October 1, 2018," it said.
Agarwal had said he wanted to buy out the London listing, which is dwarfed by Vedanta's Indian operation, to simplify the company's structure.
Analysts and fund managers have said the move could also reduce the scrutiny the company has received as a result of leaks and fatalities.
Industry players have speculated too that Agarwal, who holds almost 20 per cent of Anglo American, wants some form of tie-up with the global miner, and they see the move on Vedanta Resources as a step to creating a more sellable group.
Media reports suggested Agarwal was seeking to merge Vedanta with Anglo's South African unit and Srinivasan Venkatakrishnan, formerly head of Johannesberg-listed AngloGold Ashanti, has just taken over as the CEO of Vedanta Resources.
Agarwal, who is Anglo American's biggest shareholder through his family trust, has played down speculation he is seeking a tie-up with Anglo.
However, he has indicated that he wants to grow Vedanta into a major diversified player.
Volcan had been expected to face some shareholder resistance to the buyout. Agencies