{"id":1097838,"date":"2019-02-04T11:16:03","date_gmt":"2019-02-04T11:16:03","guid":{"rendered":"http:\/\/www.mining.com\/?p=967721"},"modified":"2019-02-04T11:16:03","modified_gmt":"2019-02-04T11:16:03","slug":"vedanta-says-anglo-american-stake-buy-meets-govt-criteria","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1097838","title":{"rendered":"Vedanta says Anglo American stake buy meets Gov\u2019t criteria"},"content":{"rendered":"

Vedanta, the London-listed natural resources company controlled by one of India\u2019s richest men, said Monday<\/a> its foreign subsidiary Cairn India Holdings\u2019 $200 million investment in Anglo American (LON:AAL) met all governance requirements.<\/p>\n

The company, India\u2019s largest miner and No. 1 iron ore exporter, said the deal was made on an arms-length basis in December 2018, adding it provided \u201csignificantly higher\u201d returns compared to other overseas cash management investments that would typically return around 2%.<\/p>\n

Moody\u2019s has placed Vedanta on review for potential downgrade following last week’s controversial investment in Anglo American.<\/q><\/p>\n

The statement comes after shares in the company lost a fifth of their value on Friday as investors were sceptical of the deal struck by Volcan<\/a>, Indian billionaire Anil Agarwal\u2019s family trust.<\/p>\n

On Thursday, Vedanta said Cairn India had paid $208 million to buy a stake in Anglo American from its parent Volcan Investments, as part of its “cash management activities”.<\/p>\n

The unit also agreed to make deferred payments aggregating $353 million until October 2020, Rating agency Moody\u2019s said on Monday, which makes the investment bigger than many had realized.<\/p>\n

Moody\u2019s, which has a non-investment grade rating on Vedanta,\u00a0has placed it on review for a possible downgrade following the purchase.<\/p>\n

In a note to investors, the rating agency said the deal was a means to \u201cfund the risk appetite of its shareholder\u201d, and a clear indication of the company\u2019s willingness to deploy cash at Vedanta to support Volcan interests.<\/p>\n

Agarwal\u2019s decision last year to take its company private was seen by some as a prelude to a potentially broader deal<\/a> with Anglo American, the world’s fifth-largest miner by market value,<\/p>\n

Volcan Investments holds around 19% in Anglo American.<\/p>\n

The post Vedanta says Anglo American stake buy meets Gov\u2019t criteria<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Shares in the company lost a fifth of their value on Friday as investors were sceptical of its foreign subsidiary Cairn India Holdings’ $200 million investment in the diversified miner.<\/p>\n

The post Vedanta says Anglo American stake buy meets Gov’t criteria<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[647,419,424,404,369,1335],"tags":[33,60,294],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1097838"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1097838"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1097838\/revisions"}],"predecessor-version":[{"id":1097839,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1097838\/revisions\/1097839"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1097838"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1097838"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1097838"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}