Billionaire Anil Agarwal’s Vedanta Resources has announced an open offer to buy upto 10% of the equity shares of the company.
It will be fully diluted voting share capital of Vedanta, from the public shareholders by Vedanta Resources together with Twin Star Holdings, Vedanta Holdings Mauritius and Vedanta Holdings Mauritius II (the promoter group & person acting in concern).
About Issue
The total open offer represents 37.2 crore shares of the company at Rs 160 per share.
Which is at 12% discount to Friday’s closing price of Rs 182.05.
The company would spend ₹5,948 crore, if the open offer is fully accepted.
The company will publish more details about Requirements of statutory approvals, details of financial arrangements, withdrawal conditions and other terms and conditions to the Open Offer through advertisement before January 15.
Why open offer?
As per the Sebi takeover code promoters holding more than 25% but less than 75% can buy upto 5% through creeping acquisition in one financial year.
Any acquisition of further shares beyond 5% should require the acquirer to make an open offer. –ET
Intermediary
The company has appointed JP Morgan India as the manager for the open offer.
Stock Market Impact
The shares of Vedanta dipped 3 per cent to Rs 175 on the BSE on Monday after the announcement.
Similar event in the past
In December 2020, the promoter group bought 4.98 per cent equity from the market at Rs 160/share by paying $400 million.
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