A Debt Iceberg Threatens to Turn Resources Titan Into Titanic
Vedanta has been hit hard by higher-for-longer interest rates. A proposed six-way business split smacks of desperation.
Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services in Asia. Previously, he worked for Reuters, the Straits Times and Bloomberg News.
Indian billionaire Anil Agarwal is shuffling the deck chairs, as his Vedanta Resources Ltd. approaches a $3 billion iceberg of dollar bonds due over the next two years. Can the commodities titan avoid the fate of the Titanic? The answer may only partly depend on investors’ greed for dividends.
Vedanta Ltd., the Indian publicly traded firm controlled by privately held Vedanta Resources, has announced a plan to split itself into six companies. For every share of Vedanta Ltd., investors will receive one share in each of the five new businesses: aluminum, oil and gas, power, steel and ferrous, and base metals. They will also retain their original share in Vedanta Ltd., which will continue to own 65% of Hindustan Zinc Ltd., apart from hosting new bets like semiconductors and LCD displays.
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A Debt Iceberg Threatens to Turn Resources Titan Into Titanic