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Vedanta Resources (VED)

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Friday 19 November, 2010

Vedanta Resources

Financing Agreements for Acqu

RNS Number : 4843W
Vedanta Resources PLC
19 November 2010
 



19 November 2010

 

Financing Agreements for

Acquisition of Cairn India Limited

 

Vedanta Resources plc ("Vedanta") today announces that it has entered into financing agreements for US$6 billion with a consortium of leading banks to fund the Vedanta Group's proposed acquisition of 51-60% of Cairn India Limited for an aggregate consideration of approximately US$8.5 billion to US$9.6 billion (the "Transaction"). Vedanta Resources plc proposes to acquire 31%-40% and Vedanta's subsidiary Sesa Goa Ltd will acquire a 20% stake in Cairn India Ltd.

 

The bank consortium comprises Barclays Capital, Citi, Credit Suisse, Goldman Sachs, J.P. Morgan, Morgan Stanley, Royal Bank of Scotland and Standard Chartered. The financing arrangements comprise four tranches with maturities of between 18 months and three years.  General syndication of part of the financing will commence shortly.

 

Allen & Overy LLP and Linklaters LLP acted as International Legal Counsel for the transaction while AZB & Partners and Talwar Thakore & Associates acted as Indian Legal Advisors.

 

Mr Anil Agarwal, Chairman of Vedanta Resources plc said "The financing announced today provides the group with funding flexibility. We are delighted to announce US$6 billion of commitments from leading international banks, a testament to the strength of the Vedanta story. "

 

Ashwin Bajaj

VP - Investor Relations

Vedanta Resources plc

 

investorrelations@vedanta.co.in

Tel: +44 20 7659 4732 / +91 22 6646 1531

Faeth Birch

Gordon Simpson

Finsbury

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.

Disclaimer

This press release contains "forward-looking statements" - that is, statements related to future, not past, events. 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. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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