Vedanta up 2% as Anil Agarwal likely to buy remaining stake in company

Shares of Vedanta advanced 2.5 percent intraday Monday as company's chairman Anil Agarwal is likely to buy remaining stake in the company.

Vedanta Resources Plc said on Monday chairman Anil Agarwal's family trust has agreed to buy the rest of Vedanta in a deal that values the mining conglomerate at 2.3 billion pounds ($3.03 billion).

recommend a firm offer to Vedanta's shareholders. Volcan currently holds about 66.53 percent of Vedanta.

The offer of 825 pence per share represents a 27.6 percent premium to London listed Vedanta's close on Friday of 646.8 pence.

In addition to the offer price, shareholders will also be entitled to receive a previously announced dividend of 41 cents per Vedanta share, the company said, adding that this would boost the offer price to 856 pence per share.

Indian industrialist Agarwal said last year he does not intend to keep Vedanta in family hands and would withdraw Vedanta. Agarwal says no plans to buy Anglo American assets in south Africa from the group in the next few years.

Agarwal is also Anglo American's biggest shareholder with a nearly 20 percent stake through Volcan.

Agarwal earlier this year played down speculation that he is seeking a tie-up with Anglo.

Vedanta has come under increased scrutiny in India since police opened fire on protesters, killing 13, at a demonstration against a copper smelter in May. The smelter has since been shut down.

At 14:24 hrs Vedanta was quoting at Rs 240.60, up Rs 4.85, or 2.06 percent.