Kolkata: The board of Vedanta Limited on Monday approved a proposal for delisting of the company after taking into record a due diligence report dated May 18, 2020 by SBI Capital Markets.
In a notification to the BSE late on Monday evening, Vedanta said the board also approved the company’s plan to seek shareholders approval for the delisting proposal through special resolution through postal ballot and e-voting.
Vedanta also informed the exchanges that it had received a letter dated May 18, 2020 from Vedanta Resources Limited (VRL) informing the company that the floor price of the delisting proposal is Rs 87.25. The letter was accompanied by a certificate issued by Price Waterhouse & Co. VRL had informed its willingness to accept equity shares tendered in the delisting offer at a price of Rs 87.5.
“However, the final offer price for the delisting proposal will be determined in accordance with the reverse book building mechanism,” the company said.
The Vedanta scrip closed at Rs 92.45, down 0.48% from its previous close on the BSE on Monday.
VRL has proposed to buy 48.9% shares at Rs 87.5 apiece. In an interview to ET, Anil Agarwal had said the $ 2.5 billion buyout was “the last step of a complex exercise to restructure the group.”
Last week the company had said it has received a letter dated May 12, 2020 from one of the members of the promoter and promoter group of the company namely, Vedanta Resources Ltd (VRL).
In the letter, VRL has expressed its intention to, either individually or along with one or more subsidiaries, acquire all fully paid-up equity shares of the company that are held by the public shareholders of the company and consequently voluntarily delist the Equity Shares from BSE Limited and National Stock Exchange of India Limited, VRL along with the other members of the promoter group presently hold 1,76,43,26,080 equity shares aggregating to 51.06% of the paid-up equity share capital of the company, excluding American Depository Shares issued by the company. As on date, the Public Shareholders hold 169,10,90,351 Equity Shares aggregating to 48.94% of the paid-up equity share capital of the company, excluding ADS issued by the company. This includes Equity Shares held by the Employee Trust.
