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After making a failed attempt to delist, billionaire Anil Agarwal-owned Vedanta Resources along with Twin Star Holdings, Vedanta Holdings Mauritius and Vedanta Holdings Mauritius II has made a fresh open offer to acquire 37.17 crore equity shares representing 10 per cent of its group company Vedanta at ₹160 a share.
The company would spend ₹5,948 crore, if the open offer fully is successfully accepted.
The open offer price announced by the company is lower than the closing price of ₹182 on Friday.
The company has appointed JP Morgan India as the manager to the open offer.
The company will publish more details such as the statutory approvals required for the open offer, details of financial arrangements, conditions for withdrawal of the open offer and other terms and conditions to the Open Offer through advertisement before January 15, it added.
Earlier, the promoter group company Vedanta Holdings Mauritius had hiked stake in its subsidiary Vedanta by 4.98 per cent through creeping acquisition with an investment of ₹2,959 crore ($406 million).
Fund raising
Vedanta Resources, the holding company of Vedanta, late last month raised $400 million through issue of debt papers to an entity of US-based hedge fund Oaktree Capital Group to meet its immediate liquidity requirements.
The notes issued will be partly secured by shares in stock exchange listed Vedanta, according to exchange filings by the company.
The fund raising from Oaktree came close on heels of $1 billion raised through issue of one of the highest yield dollar bond in Asia. That debt issuance was to fund a tender offer for securities due 2021.
Failed delisting bid
In May, Vedanta Resources announced a delisting offer at ₹87.5 a share but failed to garner minimum required shares to make the buyback a success.
Interestingly, LIC, which held 6.37 per cent in Vedanta, submitted all its shares at a price of ₹320, a 267 per cent premium over the floor price upsetting Vedanta’s calculations.
The total number of shares validly tendered by public shareholders in the delisting offer was 125.47 crore, which was less than the minimum number of shares required to be accepted by the acquirers in order for the delisting offer to be successful.