July 31, 2018 / 7:10 AM / a year ago

Vedanta chairman offers $1 billion to take miner private

(Reuters) - Vedanta Resources Plc VED.L Chairman Anil Agarwal’s family trust on Tuesday offered about $1 billion in cash to take the London-listed miner private.

Volcan, which currently holds about 67 percent of Vedanta, offered $10.89 or 825 pence per share to buy the rest of the stake. The deal valuing Vedanta at $3.07 billion represents a premium of about 6 percent to the stock’s Monday close.

An independent committee that evaluated the proposal unanimously recommended Volcan’s offer to Vedanta shareholders, the mining conglomerate said.

Shares of the company have risen 20.5 percent since Volcan made a possible offer at the same price on July 2.

Vedanta shareholders will also be entitled to receive a $0.41 dividend per Vedanta share, the company added. The offer price and dividend represent a total value of $11.30 per share.

The offer comes as the company faces scrutiny after police killed 13 people protesting Vedanta’s copper smelter in India in May.

Reporting by Arathy S Nair in Bengaluru; Editing by Amrutha Gayathri

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