Vedanta Resources founder makes a bid to buy company

FTSE 250 mining outfit Vedanta Resources (LON:VED) watched its shares shoot upwards by 26.65% to 819.20p after the company announced that it had agreed the terms of a potential recommended cash offer for the company from a trust owned by the company’s founder Anil Agarwal. Under the terms of the agreement, shareholders would be paid 825p in cash and would still receive the previously announced dividend of $0.41 (41p) for the year ended 31st March.

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The cash offer represents a 27.6% premium over Friday’s closing price. The reasons given for the offer being made included both the current price as well as the increased availability of funding in Indian capital markets, which has reducing the need for a London listing.