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Wednesday, October 28, 2020

Vedanta delisting offer fails, shares to be returned

What upset the Vedanta plan is the decision by LIC, which holds 6.37 per cent in Vedanta, to submit all its shares at a price of Rs 320, a 266 per cent premium over the floor price of Rs 87.25 per share.

By: ENS Economic Bureau | Mumbai | October 11, 2020 12:21:05 am
Vedanta Ltd

The mega delisting offer of Anil Agarwal-controlled Vedanta Ltd has failed and the company has decided to return the shares to the shareholders.

What upset the Vedanta plan is the decision by LIC, which holds 6.37 per cent in Vedanta, to submit all its shares at a price of Rs 320, a 266 per cent premium over the floor price of Rs 87.25 per share.

“In connection with the aforesaid delisting offer, we have been informed by Vedanta Resources Ltd and its indirect subsidiaries namely, Vedanta Holdings Mauritius Ltd and Vedanta Holdings Mauritius II Ltd (collectively to be referred as acquirers) that the delisting offer is deemed to have failed in terms of Regulation 19(1) of the Delisting Regulations,” Vedanta said in a stock exchange filing.

“All equity shares tendered in the delisting offer will be returned to the respective public shareholders in accordance with Regulation 19(2)(a) of the Delisting Regulations,” it said. Shares can be delisted only when the promoter gets at least 90 per cent of the stake. “The total number of Offer Shares validly tendered by the shareholders in the offer is 125.47 crore shares, which is less than the minimum number of offer shares required to be accepted by the acquirers in order for the delisting offer to be successful,” the company said.

Accordingly, the acquirers will not acquire any equity shares tendered by the shareholders in the offer and the equity shares of the company will continue to remain listed on the stock exchanges, it said.

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