Vedanta Resources to buy back bonds worth up to USD 250 mn

Metals and mining conglomerate Vedanta Resources will repurchase bonds worth up to USD 250 million (about Rs 1,700 crore) of its outstanding USD 1.25 billion convertible bonds due this year.
Last month, the firm led by NRI billionaire Anil Agarwal had announced plans to repurchase in cash bonds worth USD 500 million (about Rs 3,300 crore) out of its outstanding USD 1.13 billion convertible bonds due in July this year.
But the London Stock Exchange-listed company had later trimmed the bond repurchase offer to USD 227.40 million.
"The Offeror (Vedanta) proposes to purchase up to USD 250 million in aggregate principal amount outstanding of bonds on the terms and subject to the conditions contained in the Tender Offer Memorandum.

"The Offeror reserves the right, in its sole and absolute discretion, to purchase less than or more than the Maximum Acceptance Amount, subject to applicable law," Vedanta Resources said in a statement late last night.
The firm, with businesses ranging from metals to oil, said it is inviting holders of outstanding bonds (USD 1.25 billion 5.50 per cent guaranteed convertible bonds due 2016) to tender them for purchase for cash at a price to be determined through a modified Dutch auction.

This is a type of auction in which the price on an item is lowered until it gets a bid.

The offer commenced on February 1 and will close on February 8 with settlement scheduled for February 10, 2016.
JPMorgan Securities Plc and Standard Chartered Bank will act as the Dealer Managers for the offer.