TIDMVED
RNS Number : 3465A
Vedanta Resources PLC
27 December 2017
Vedanta Resources plc
16 Berkeley Street
London W1J 8DZ
Tel: +44 (0) 20 7499 5900
Fax: +44 (0) 20 7491 8440
www.vedantaresources.com
27 December 2017
Vedanta Resources plc
Update by Vedanta Limited
Vedanta Resources plc's subsidiary Vedanta Limited today made
the below announcement.
Vedanta Limited
Acquisition of debt and controlling equity stake in AvanStrate
by a wholly owned subsidiary of Vedanta Limited
The Board of Directors of Vedanta Limited's (Vedanta) wholly
owned subsidiary, Cairn India holdings Limited (CIHL), have
approved an investment of c.US$158 million (the Acquisition) in
Japanese manufacturer for LCD glass substrate, AvanStrate Inc.
(ASI), currently majority owned by the Carlyle Group.
The transaction consists of three elements:
-- an acquisition of c.US$151 million in existing ASI debt with
face value of c.US$299 million from banks;
-- an acquisition of just over 51% of the equity stake of ASI
for a nominal consideration from the Carlyle Group; and
-- extension of a c.US$7million loan to ASI.
Through a combination of these elements, this transaction
provides both strategic control and attractive returns to CIHL.
Completion of the Acquisition is conditional on consents being
obtained from ASI's existing lenders and is expected to occur prior
to 31 December 2017.
ASI is a leading global manufacturer of glass substrates for
small and medium sized high resolution thin film transistor liquid
crystal display (TFT LCD) panels, which are used in screens for
devices including smartphones, satellite navigation systems in
vehicles, cameras, flat screen televisions, tablets and laptop
personal computers. Glass substrate is made of silicon and metallic
oxides, including aluminium oxides.
Further to Vedanta's focus on providing basic materials for the
development of India and other emerging markets, this transaction
provides optionality to the growing market of materials for
technology applications. ASI is particularly focused on supplying
glass substrate to small and medium sized TFT LCD panels, used in
many mobile devices, and India has significant market potential for
such devices.
ASI was founded in Japan, where its corporate headquarters and
research and development function are also based. ASI also has
operations in Korea and Taiwan. Hideki Horiuchi is the CEO of ASI.
The company employs around 710 people and in the financial year
ended 31 March 2017 the company had revenues of c.US$169million,
EBITDA of c.US$75million and gross assets of c.US$625million. The
consolidated net profit of ASI for the financial year ended 31
March 2017 was c.US$1.4 million, which on a proportionate basis,
for the c.51% equity stake being acquired, would imply an
attributable net profit of c.US$0.7 million.
NOMURA has acted as the financial advisor to CIHL on this
transaction.
LEI: 2138007MYEKPEAZQTW83
Classification: Additional regulated information required to be
disclosed under the laws of a Member State
For further information, please contact:
Communications Finsbury
Arun Arora Daniela Fleischmann
Head, Corporate Communications Tel: +44 20 7251 3801
Tel: +91 124 459 3000
gc@vedanta.co.in
Investors
Ashwin Bajaj Tel: +44 20 7659 4732
Director - Investor Relations Tel: +91 22 6646 1531
ir@vedanta.co.in
Sunila Martis
Associate General Manager
- Investor Relations
Veena Sankaran
Manager - Investor Relations
About Vedanta Resources
Vedanta Resources plc ("Vedanta") is a London listed diversified
global natural resources company. The group produces aluminium,
copper, zinc, lead, silver, iron ore, oil & gas and commercial
energy. Vedanta has operations in India, Zambia, Namibia, South
Africa, Ireland and Australia. With an empowered talent pool
globally, Vedanta places strong emphasis on partnering with all its
stakeholders based on the core values of trust, sustainability,
growth, entrepreneurship, integrity, respect and care. To access
the Vedanta Sustainable Development Report 2017, please visit
http://www.vedantaresources.com/media/214366/vedanta_sd_report_2016-17.pdf.
For more information on Vedanta Resources, please visit
www.vedantaresources.com
Disclaimer
This press release contains "forward-looking statements" - that
is, statements related to future, not past, events. In this
context, forward-looking statements often address our expected
future business and financial performance, and often contain words
such as "expects," "anticipates," "intends," "plans," "believes,"
"seeks," "should" or "will." Forward-looking statements by their
nature address matters that are, to different degrees, uncertain.
For us, uncertainties arise from the behaviour of financial and
metals markets including the London Metal Exchange, fluctuations in
interest and/or exchange rates and metal prices; from future
integration of acquired businesses; and from numerous other matters
of national, regional and global scale, including those of a
political, economic, business, competitive or regulatory nature.
These uncertainties may cause our actual future results to be
materially different that those expressed in our forward-looking
statements. We do not undertake to update our forward-looking
statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQFEWSUWFWSEEE
(END) Dow Jones Newswires
December 27, 2017 04:29 ET (09:29 GMT)
Vedanta (LSE:VED)
Historical Stock Chart
From Apr 2024 to May 2024
Vedanta (LSE:VED)
Historical Stock Chart
From May 2023 to May 2024