Tuesday, December 2, 2008

Vedanta to buy back shares worth $250 mn

To enhance value for its shareholders, NRI billionaire Anil Agarwal-led Vedanta Resources Plc on Tuesday said it will buy back shares worth USD 250 million, representing a 10 per cent stake in the company, from the open market.

"Given the recent share price decline and current market conditions, the board of Vedanta believes that such a buyback programme would be value-enhancing for its shareholders," the company said in a filing to the London Stock Exchange here.

Vedanta would use only a small part of its substantial cash balances of over USD 5 billion and the group would remain well-capitalised to fund its organic growth programme, it said.

The global metal and mining major also said that its board would continue to seek opportunities to consolidate minorities within the group, to create more wealth and value for its investors.

"In addition, the board will continue to seek opportunities to consolidate minorities (minority shareholders) within the group, in line with its stated strategy," it added.

Vedanta's major shareholder, Volcan Investments Ltd, would not participate in the buyback, the London-based conglomerate added.

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