Is the Vedanta group looking to merge the US holding company with the Indian unit?
Answer
Answer
Anil Agarwal of Vedanta has been evaluating a possible merger of his indebted holding company (Vedanta Resources UK) with the cash-rich Indian unit of Vedanta Ltd. The global commodity boom has come as a blessing in disguise for Vedanta Ltd as it had fuelled a rally in Vedanta Ltd with market cap doubling last year to $17 billion.
Vedanta Resources had tried to increase its stake in Vedanta Ltd in 2020 but the deal failed after LIC had rejected the offer price as being too low. Eventually, LIC proved to be bang on target. Vedanta group has experienced several brushes on corporate governance, especially with group holding company structure.