Vedanta kicks off breakup with $20bn aluminium float
Sunday 14 March 2010
Vedanta Resources, the India-based Ftse 100 miner, is ready to begin a massive break-up of its business with the demerger of its $20bn (£13bn) aluminium division.
The new firm will be the world's fourth biggest aluminium player, behind Russia's United Company Rusal, America's Alcoa and China's Chalco.
Sources close to Vedanta, in which the Agarwal family holds the majority stake, confirmed that an announcement is expected soon, perhaps as early as this week. Over the next few years, Vedanta intends to spin-off five or six businesses, which include zinc, iron ore and power, though it will retain controlling interests in all of them.
Vedanta and its advisers, which include Morgan Stanley, Credit Suisse and JP Morgan Cazenove, believe that simplifying the ownership structures of the subsidiaries will make the overall group more valuable.
A source said that Vedanta's aluminium interests have a "potential value" of $20bn; the overall group is currently only worth about $11.3bn, but the complicated conglomerate model leads to some investors shuning the stock.
Vedanta will apply to Indian courts to demerge aluminium, a process that could take two to three months. Once a confusing share ownership structure is cleaned up, the business would then start trading in Mumbai, with a secondary listing to take place in either London or New York.
Only about 10 to 15 per cent of the company would be listed, raising up to $3bn. The initial public offering should take place by the end of the year, with even June considered a possibility if the legal process is completed quickly.
After aluminium, Vedanta's Zambian copper business is expected to be spun-off. Vedanta also has copper operations in Australia and India.
- 2 Disney heiress Abigail disowns her share of family profits in West Bank company
- 3 The secret report that helps Israel hide facts
- 4 'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
- 5 Israel's propaganda machine is finally starting to misfire
The secret report that helps Israel hide facts
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
A day in the life of Vladimir Putin: The dictator in his labyrinth
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Boozy, ignorant, intolerant, but very polite – Britain as others see us
- < Previous
- Next >
iJobs Money & Business
£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...
£450 - £650 per day + competitive: Orgtel: My client, a leading bank, is curre...
£350 - £400 per day + competitive: Orgtel: Senior Analyst, ALM Data, Halifax, ...
£500 - £600 per day: Orgtel: Java developer - Banking - London - Up to £600/d...