Vedanta Ltd’s promoter Anil Agarwal is in talks with several banks to tie up loans worth $2.0 billion-$2.5 billion to help finance the delisting offer of Vedanta.
On 12 May, Vedanta Resources, the promoter entity of Vedanta Ltd, had informed stock exchanges that it will delist the latter. Vedanta has offered public shareholders, who collectively hold 49% stake in the company, a price of ₹87.5 per share for rendering their shares in the offer.
“JP Morgan is the lead banker to the deal. They are also talking to many other banks. The business throws up significant amounts of cash through dividends and these will be used to repay the loan,” said a person aware of the development, speaking on the condition of anonymity as the talks are private.
On Thursday, The Economic Times reported that Vedanta is talking with banks including Barclays, Standard Chartered Bank and Citi for the loans.
“While the talks are on, other banks are yet to take a formal decision on joining the deal,” said the person cited above.
A spokesperson for Vedanta group could not be immediately reached for a comment.
Agarwal has a track record of merging and delisting his companies.
Agarwal’s Volcan Investments Ltd. has in the past taken his London-listed Vedanta Resources Ltd. private as the entrepreneur sought to simplify the corporate structure of his resources group.
In 2012, he merged mining firms Sterlite and Sesa Goa to form Vedanta. After his buy out of Cairn, Vedanta set in motion the process of delisting the cash-rich Cairn India in 2016 and merge it fully with self.
