Vedanta board approve plan to separate the business into six listed verticals

Billionaire Anil Agarwal’s Vedanta Ltd. has announced plans to overhaul the tycoon’s sprawling conglomerate as part of efforts to reduce a multibillion-dollar debt load.

The board of Vedanta Ltd. approved a plan to separate the business into six listed verticals — aluminium, oil and gas, power, steel and ferrous, base metals and Vedanta Ltd., the company said in a statement Friday. For every share of Vedanta Ltd., shareholders will receive one share of each of the five newly listed companies, it said.

It was reported recently that a broad restructuring effort was imminent, with businesses including aluminium, oil and gas, iron ore multi-billion-dollar steel to be separately listed. Efforts to simplify a complex financial structure and to reduce a deep conglomerate discount have been floated by the group in the past, including in a video posted in August, but have not previously come to fruition.

Friday’s move, if successful, would pave the way for Agarwal hive off low-growth assets to raise cash, while allowing investors to bet on some of the company’s newer ambitions, including in semiconductors.

By: Gary Kakompe


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