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Wired News - Vedanta to Acquire Majority Stake in AvanStrate, A Glass Substrate Manufacturer

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LONDON, UK / ACCESSWIRE / December 29, 2017 / Active-Investors.com has just released a free research report on Vedanta Ltd (NYSE: VEDL). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=VEDL as the Company's latest news hit the wire. On December 27, 2017, the Company announced that through its subsidiary, Cairn India Holdings Limited, it has acquired a controlling stake in Japan-based LCD glass substrate manufacturer AvanStrate Inc. for $158 million. AvanStrate is a leading global manufacturer of glass substrates for small and medium-sized TFT LCD panels which are currently used in multiple devices from the likes of smartphones to camera and laptops. Register today and get access to over 1000 Free Research Reports by joining our site below: www.active-investors.com/registration-sg.

Active-Investors.com is currently working on the research report for Uranium Energy Corp. (NYSE American: UEC), which also belongs to the Basic Materials sector as the Company Vedanta. Do not miss out and become a member today for free to access this upcoming report at: www.active-investors.com/registration-sg/?symbol=UEC.

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Vedanta most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below: www.active-investors.com/registration-sg/?symbol=VEDL/.

The Agreement

Under the terms of the agreement, Vedanta will assume $151 million in existing AvanStrate debt with face value of $299 million from banks. The Company, through its subsidiary, Cairn India, will acquire about 51% of the equity stake of ASI from the Carlyle Group. Moreover, the Company has agreed to grant an extension of $7 million loan to ASI. Vedanta is a diversified natural resources company, and it is involved in the production of oil and gas, zinc, silver, copper, iron ore, aluminium, and commercial power. Vedanta has a multinational presence across India, Namibia, South Africa, Australia, and Ireland.

Vedanta has been interested on entering the LCD manufacturing business, and back in February 2016, the Company had announced setting up India's first integrated manufacturing facility in Nagpur for about $10 billion in five phases. AvanStrate is a leading supplier of glass substrate to small and medium-sized TFT LCD panels, used in multiple mobile device where India is an important consumer of such devices.

Currently, Carlyle Group owns a majority stake in AvanStrate, which is headquartered in Japan and has operational presence in Korea and Taiwan. The Company reported a net profit of $1.4 million on a turnover of $169 million for the full-year ended March 31, 2017. Vedanta views this acquisition as a step to enhance its presence in the LCD manufacturing business, where the agreement will enable it to build an in-house expertise to scale up the manufacturing output. Also, the agreement will help Vedanta provide basic materials concerning technology applications, for the development of India and other emerging markets.

Company Growth Prospects

On November 10, 2017, Vedanta announced its Board of Directors' approval concerning the brownfield growth projects in the Cairn Oil & Gas Business and an expansion project in the copper business. The oil & gas business, according to the Company, commenced its next phase of growth, eventually resulting in additional production of 100 thousand barrels of oil equivalent per day (kboepd), where the Company plans to scale up the production to 275-300kboepd by FY20. Moreover, the Company, under its project portfolio stated that it would deploy latest fracking technologies to recover oil and gas from tighter reservoir formation.

In addition, on November 10, 2017, the Company's Board approved the expansion of its copper smelter unit at Tuticorin to double its capacity from 400 thousand tonnes(kt) p.a. To 800kt p.a., with a capex of $717 million of which $141 million has already been spent. The completion of this project is expected to place this location as one of the world's largest single-location copper smelting complexes. The project according to the Company, from the particular date, had an execution timeline of 24 months, with the commissioning and stabilization of the plant to be expected in FY20.

Stock Performance Snapshot

December 28, 2017 - At Thursday's closing bell, Vedanta's stock rose 3.18%, ending the trading session at $21.12.

Volume traded for the day: 489.31 thousand shares, which was above the 3-month average volume of 389.86 thousand shares.

Stock performance in the last month - up 12.22%; previous three-month period - up 10.23%; past twelve-month period - up 70.87%; and year-to-date - up 70.05%

After yesterday's close, Vedanta's market cap was at $19.43 billion.

The stock has a dividend yield of 5.68%.

The stock is part of the Basic Materials sector, categorized under the Industrial Metals & Minerals industry. This sector was up 0.4% at the end of the session.


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