Vedanta Resources to raise $1.1 billion in London IPO for Zambian copper assets
17 Nov 2010
Vedanta Resources Plc, the mining conglomerate controlled by UK-based billionaire Anil Agarwal, is planning to float its Zambian copper assets in the London Stock Exchange next month, in an initial public offering that could raise $1.1 billion (£693 million).
The listing would value the London-listed Vedanta's Zambian Konkola Copper Mines (KCM), based in Nehanga, Zambia at up to $7.1 billion.
Konkola Copper Mines, which is 79.4-per cent owned by Vedanta, plans to raise $1.1 billion, the proceeds of which will be used to expand its mines in Zambia and pay its $782 million debt.
Vedanta said that it will remain a majority shareholder in the newly-listed company.
"Since we became involved with KCM in Zambia in 2004, we have seen it deliver a number of landmark projects and substantially increase its copper reserves. This is a testament to the technical skills, dedication and partnership approach of the management team, employees and local communities,'' said Agarwal, executive chairman of Vedanta.
''With our partners, our existing stakeholders and our new investors we look forward to seeing significant growth in Konkola Resources in the coming years, in what is undoubtedly one of the most attractive commodities and one of the premium destinations for copper production. The transaction is expected to unlock value for Vedanta shareholders with an independent listing and valuation," he added.
