Billionaire Agarwal proposes £800 million buyout of Vedanta Resources

Indian metals tycoon Anil Agarwal has tabled a deal to buy out the minority shareholders of Vedanta Resources for close to £800 million, in a move which would see the diversified miner delisted from the London Stock Exchange.

The proposed offer is pitched at a 28% premium on Vedanta’s closing price on Friday and comes from Agarwal’s family trust Volcan, which will offer 825p a share in cash for the 33.5% of the company that it does not already own.

Agarwal plans to push ahead with the deal that will simplify the structure of his sprawling business empire, describing the move as a ‘natural progression of our journey’.

“However, given the subsequent growth of our underlying businesses and the maturity of the Indian capital markets…we have concluded that a separate London listing is no longer necessary to achieve the Vedanta Group’s strategic objectives,” he added.

Vedanta’s key assets include a 50.1% stake in India-listed Vedanta Ltd and a 79% holding in KCM, a copper mine and smelter in Zambia.

The buyout of Vedanta could also reignite talk of Agarwal bidding for a stake in Anglo American, an outfit that the billionaire has previously described as ‘a great company with excellent assets’.