RNS Number : 6485Z
Vedanta Resources PLC
25 September 2009
NOT FOR DISTRIBUTION IN OR TO THE U.S., CANADA, AUSTRALIA OR JAPAN, OR IN ANY OTHER JURISDICTION IN WHICH SUCH DISTRIBUTION WOULD BE PROHIBITED BY APPLICABLE LAW
Vedanta Resources plc
Sesa Goa Limited - Pricing of Convertible Bond Offering
Vedanta Resources plc's subsidiary Sesa Goa Limited ('Sesa') announces the final terms of the previously announced Foreign Currency Convertible Bonds ('FCCBs'). The full text of the release issued by Sesa is given below.
Sesa Goa Limited
Pricing of Convertible Bond Offering
Sesa Goa Limited (the 'Company') announces the final terms of the previously announced launch of an offering of Foreign Currency Convertible Bonds ('FCCBs'). The size of the offering is US$ 500 million.
The FCCBs will have a coupon of 5% per annum, payable semi-annually in arrear and will be convertible into equity shares of the Company. The conversion price has been set at Rs. 346.88 per share, representing a premium of 28% to the reference price of Rs. 271.00 per share.
Proceeds from the offering will be used to expand the Company's mining operations, for exploration for new resources, and to further develop its pig iron and metallurgical coke operations. Use of proceeds will be in accordance with end-use restrictions specified in the External Commercial Borrowing regulations issued by the Reserve Bank of India.
The proposed offering of the FCCBs is subject to passing a special resolution of the shareholders of the Company
(at least 75% present and voting) at an Extraordinary General Meeting of the Company scheduled to be held on
20 October 2009 and other customary closing conditions. Settlement is expected to occur shortly thereafter, once all necessary approvals have been obtained.
For further information, please contact:
Director - Investor Relations
Vedanta Resources plc
Tel: +44 20 7659 4732 / +91 22 6646 1531
Tel: +44 20 7251 3801
About Vedanta Resources plc
Vedanta Resources plc ('Vedanta') is a London listed FTSE 100 diversified metals and mining major. The group produces aluminium, copper, zinc, lead, iron ore and commercial energy. Vedanta has operations in India, Zambia and Australia and a strong organic growth pipeline of projects. With an empowered talent pool of 30,000 employees globally, Vedanta places strong emphasis on partnering with all its stakeholders based on the core values of entrepreneurship, excellence, trust, inclusiveness and growth. For more information visit www.vedantaresources.com
About Sesa Goa Limited
Sesa Goa is India's largest exporter of iron ore in the private sector. The company is a majority owned and controlled subsidiary of Vedanta Resources plc, the London listed FTSE 100 diversified metals and mining major. For over five decades, Sesa has been involved in iron ore mining, beneficiation and exports. Over the last two decades, it has diversified into the manufacture of pig iron and metallurgical coke. Sesa has mining operations in Goa, Karnataka and Orissa while it also operates a 280,000 TPY metallurgical coke plant and a 250,000 TPY pig iron plant in Goa.. The Company recently acquired the shares of V.S. Dempo & Co. Pvt. Ltd, which in turn holds 100% equity shares of Dempo Mining Corp. Pvt.Ltd.
This press release is not for distribution, directly or indirectly in or into the United States. This press release is not an offer to sell securities or the solicitation of any offer to buy securities in the United States or any other jurisdiction, nor there be any offer of securities in any jurisdiction in which such offer or sale would be unlawful. The FCCBs and the shares issuable upon the conversion of the FCCBs have not been and will not be registered in the United States under the U.S. Securities Act of 1933, as amended (the 'Securities Act'), and may not be offered or sold in the United States absent registration or exemption from registration under the Securities Act. There will be no public offer of the FCCBs or shares issuable upon the conversion of the FCCBs in the United States or in any other jurisdiction.
This press release contains 'forward-looking statements' - that is, statements related to future, not past, events and may be interpreted as 'forward looking statements' within the meaning of applicable laws and regulations. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,' 'seeks,' 'should' or 'will.' Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the company's operations include a downtrend in the steel, pig iron & met coke industry - global or domestic or both, significant changes in political, economic, business, competitive or regulatory environment in India or key markets abroad and from numerous other matters of national, regional & global scale including but not limited to natural calamity, tax laws, litigations, Government policies & regulations, fluctuations in interest and or exchange rates of Indian Rupee, etc. Any forward-looking information in this press release has been prepared on the basis of a number of assumptions, which may prove to be incorrect. This press release should not be relied upon as a recommendation or forecast by Sesa Goa Ltd. The views expressed herein may contain information derived from publicly available sources that have not been independently verified; no representation or warranty is made as to the accuracy, completeness or reliability of this information. We do not undertake to update our forward-looking statements.
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