Vedanta to seek renewed shareholder approval for share buyback
New Delhi: Billionaire Anil Agarwal-led Vedanta Resources will seek renewed approval from shareholders for its proposal to buy back as many as 2.73 crore shares, amounting to about 10 percent of the company's equity.
"The company may buy its own shares with the authority of shareholders," Vedanta Resources said in a notice, seeking their nod to renew the approval given at last year's annual general meeting, which is due to expire at this year's AGM, scheduled on August 1.
During the year, the mining and exploration company did not purchase any of its shares under this programme.
"The authority being requested will last until the conclusion of the AGM in 2014 or on October 1, 2014, whichever is earlier. The resolution specifies the maximum number of shares that may be purchased (being approximately 10 percent of the company's issued share capital, excluding treasury shares, as at June 17, 2013)," it said.
London-listed Vedanta Resources proposes to buy a maximum of 27,337,819 shares through market purchases at a minimum price of USD 0.10 per share.
"Any shares purchased under this authority will either be treated as cancelled or held as treasury shares. Listed firms, with authorisation from shareholders, may buy and hold their own shares in treasury instead of cancelling them immediately. Shares held as treasury shares can in the future be cancelled, re-sold or used to provide shares for employee share schemes," Vedanta Resources said.
In December 2008, Vedanta had announced a USD 250 million share buyback programme to purchase up to 10 percent of the company's shares. In April 2010, it increased the size of the programme to USD 825 million.
In 2010, it had announced a change to the structure of the buyback programme. It said the share purchases may be made either by the company or by an independent company to be funded by a wholly-owned subsidiary, Vedanta Jersey Investment (VJIL).
The independent company is Gorey Investments. VJIL will make purchases of the company's shares on behalf of Gorey within the limits of the buyback programme.
Vedanta Resources operates in countries including India, Australia and some African nations. The company, which had USD 15 billion in revenue in the year ended March, produces aluminium, copper, zinc, lead, silver, iron ore, power, and oil and gas.