Vedanta Resources to raise up to $2.5bn for Indian unit delisting

///Vedanta Resources to raise up to $2.5bn for Indian unit delisting

Vedanta Resources to raise up to $2.5bn for Indian unit delisting

by India Inc. Staff
Vedanta Resources to raise up to $2.5bn for Indian unit delisting

The metals and mining firm is in talks with global banks to help finance the delisting offer of Vedanta Ltd.

Vedanta Resources is reportedly raising up to $2.5 billion in short-term loans from international banks to help finance the delisting offer of Vedanta Ltd. Banks such as JP Morgan, Barclays, Standard Chartered and Citi have been tapped to underwrite the facility in three-month and 12-month maturities.

“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, a market source said in a report.

The short-term loans will be priced at 250 basis point over the London Interbank Offered Rate and will include fees, a report noted.

Vedanta Resources had earlier informed stock exchanges that it will delist the Indian unit to simplify its corporate structure. The company has offered public shareholders a price of $1.16 per share for rendering their shares in the offer.

2020-05-22T08:34:15+00:00May 22nd, 2020|India Inc Views - India Global Business, News in Brief|

About the Author: India Inc. Staff