London-listed miner Vedanta Resources Plc plans to use some of the USD 1.1 billion it plans to raise through an initial public offering (IPO) of Zambian miner Konkola Copper Mines (KCM) to repay part of the USD 6 billion debt it has taken to acquire majority stake in Cairn India from Scottish company Cairn Energy, according to company’s circular to its shareholders. Shareholders of Vedanta gave their consent to the Cairn acquisition at a meeting in London on December 13.
Vedanta has put April 15, 2011 as deadline for closing the Cairn India acquisition after obtaining all necessary regulatory consents and government approvals.
Besides the USD 1 billion bridge loan, Vedanta has also got another bridge loan of USD 1.5 billion from Barclays Capital, Citigroup, Credit Suisse, The Royal Bank of Scotland and Standard Chartered Bank, the circular said.
It has got a syndicated term loan of USD 3.5 billion from Barclays Capital, Citigroup, Credit Suisse, Goldman Sachs, JP Morgan plc, Morgan Stanley Bank, The Royal Bank of Scotland and Standard Chartered Bank.
See http://in.news.yahoo.com/vedanta-plans-ipo-money-kcm-part-fund-cairn-20101215-021600-637.html.