Executive Chairman and Vedanta Group founder Anil Agarwal
group, which grew out of acquisitions and realignments of group companies, is now taking another step of delisting the flagship Vedanta
Resources from the London Stock Exchange with its promoter Anil Agarwal
taking control through his trust Volcan Investments. While analysts say this could mean less regulatory scrutiny for the parent company, the group says it is simplification of corporate structure. In an emailed interview with Jyoti Mukul
, Agarwal says there will no impact of the proposed de-listing on the India business
Why has Vedanta Resources decided to delist?
The rationale is corporate simplification. We have been simplifying for years, through the merger of the Indian companies
to create Vedanta Limited, and then the merger of Cairn India into Vedanta Limited. This transaction is a logical next step in that process. Also, with increasing maturity of Indian markets, there is more liquidity which means that the need for a separate London listing is no longer critical.
How will the India operations get impacted by the change in ownership?
There will be no impact
What will be the next steps in the offer? When do you see it closed and sealed?
The announcement today is an intention to make an offer. It is expected that an offer will be made in 28 days. That offer will be open for a certain period of time governed by the UK rules (3-6 weeks), following which the process will be completed.
Volcan has the financing for the offer lined up and will announce details before the formal offer.
Is the decision to do this related to factors like the Sterlite incident in India and other protests elsewhere?
No link at all. This is driven by the desire to simplify the corporate structure.
Which companies and sectors has Volcan already invested? Besides you, who are the other beneficiaries of the trust?
Volcan is a private company and, therefore, it’s make up is not public. However, other than mining (Vedanta and Anglo), Volcan also has investment in fibre optics and power transmission.
How will Vedanta Resources Plc independent shareholders exit?
While taking another significant step towards group simplification, we wanted to ensure that the independent shareholders of Vedanta Resources Plc were provided with the opportunity to exit on attractive terms, and I believe this possible offer will deliver on that objective.