Indian miner to list up to six spin-off firms
Posted on | February 7, 2010 | Comments Off
Vedanta Resources is plotting one of the biggest money-spinning corporate break-ups of a Ftse 100 company in years. The Agarwal family, which has a majority stake in the India-based miner, is considering a spin-off of several of its interests, resulting in five or six companies plus a parent. Vedanta would retain controlling interests in them all, but each would be separately listed. A number of leading mining bankers in London have been asked to examine plans for the listings. For example, Vedanta wants a copper flotation to value the new business at $10bn, even though the overall company’s market valuation is only $10.6bn. “Vedanta is looking at its structure, trying to find a way to unlock value,” said one banker. By simplifying the businesses – so that various minor shareholdings are consolidated – they can be more easily valued in the market, resulting in a higher value overall.
