Brit Indian mining conglomerate Vedanta to list up to six spin-off firms

LONDON - British Indian mining giantVedanta Resources is plotting one of the biggest money-spinning corporate break-ups of a Ftse 100 company in years.

The Agarwal family, which has a majority stake in the India-based miner, is considering a spin-off of several of its interests, resulting in five or six companies plus a parent. Vedanta would retain controlling interests in them all, but each would be separately listed, reports The Independent.

A number of leading mining bankers in London have been asked to examine plans for the listings.

For example, Vedanta wants a copper flotation to value the new business at 10 billion dollars, even though the overall company’s market valuation is only 10.6 billion dollars.Vedanta is looking at its structure, trying to find a way to unlock value,” said one banker.

Vedanta, chaired by Anil Agarwal, is a complicated mining conglomerate, with interests in aluminium, power and zinc.

Banks are debating where the listings should end up. Most will be of a size that would place them on “the cusp of the Ftse 100″ claimed one source.

Some potential advisers believe that most of the listings will end up in India and Hong Kong, the latter following the recent flotation of Russia’s aluminium behemoth United Company Rusal.

However, some advisers have told Vedanta that London would be a suitable location for some spin-offs.

A formal decision on the move is “imminent” according to one industry source, though some believe that rejecting what is, in effect, the conglomerate model will mean that the spin-offs are not protected against sudden shifts in commodity prices. (ANI)