(Bloomberg) -- Vedanta Resources Ltd. has begun sounding out debt holders about the possibility of extending maturities on some of its dollar bonds to reduce refinancing pressures.The mining giant started approaching the investors to discuss possible debt extensions after the company’s failed attempt to delist its India unit, Vedanta Ltd., people familiar with the matter said.“We would like to clarify that Vedanta Resources is not in talks with any bondholder for debt tenure extension,” a spokesman for Vedanta said in a statement, after the Bloomberg story was published. The spokesman had earlier declined to comment.The company’s $670 million of bonds due June next year, which are among the notes involved, slumped as much as 7.7 cents after the news. That left them set for the sharpest daily drop in more than six weeks, according to prices compiled by Bloomberg.Pressures are mounting at London-based Vedanta Resources after the delisting flopped, given it would have helped the holding company more easily access cash at the unit. That’s triggered warnings from credit rating firms about Vedanta Resources’ debt pile. Vedanta’s businesses include zinc, aluminum and oil and gas. Those commodities were hit by a slump in demand amid the pandemic earlier this year, though prices have since rebounded.Read more about the failed delisting hereInvestors and rating companies are scrutinizing the group’s refinancing plans as tycoon Anil Agarwal tries to streamline its corporate structure. Holding companies including Vedanta Resources, which are controlled Agarwal, face their highest debt repayments in years.(Updates with company comment in third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
India's Vedanta Ltd, the billionaire Anil Agarwal-controlled metals-to-oil conglomerate, said on Wednesday it was interested in buying the government's stake in the state-run Bharat Petroleum Corp Ltd, India's largest fuel retailer. “Vedanta's expression of interest (EoI) for BPCL is to evaluate potential synergies with our existing oil & gas business," the company said in a statement, adding that The EoI was at a "preliminary stage and exploratory in nature."
(Bloomberg) -- A hedge fund shareholder of Vedanta Ltd. has asked the Indian commodities firm to recall a $956 million loan to units of its parent, setting the stage for a battle with billionaire Anil Agarwal.The loan represented an “improper transfer of value” away from minority shareholders to Agarwal-controlled Vedanta Resources Ltd., London-based hedge fund Kyma Capital, which owns less than 1% in Vedanta, wrote to the company late Wednesday. “This is a clear-cut case of siphoning off funds and value that belongs to Vedanta Ltd., and all its stakeholders,” said the fund, which is run by Akshay Shah, a former Blackstone Group Inc. manager.Representatives for Vedanta didn’t respond to an email and calls for comment. The unsecured loans were extended mainly as cash management activities for better rates, Vedanta Chief Financial Officer Arun Kumar had said in a call with analysts Nov. 6. Following a $207 million repayment by June 2021, about $300 million will be repaid each year, he said.The hedge fund’s objection comes as Agarwal’s holding companies including Vedanta Resources face a combined $1.17 billion in debt that’s maturing next year, according to Bloomberg-compiled data. The billionaire’s attempts to take Mumbai-listed Vedanta private failed just over a month ago, prompting credit-rating downgrade warnings on concern about the funding needs of Vedanta Resources.Kyma Capital also asked Vedanta’s board to start a special independent audit into the loan, according to its letter that was released in a public filing. The hedge fund highlighted the resignation of an independent director on the board, and questioned the choice of “obscure” auditors based in Gurgaon in northern India that it said had no statutory authorization to audit the Jersey-headquartered unit that made the loan.While the loan was made to Vedanta Resources over a period of time, a large chunk--$430 million--was lent since Sept. 30, according to the company’s most recent quarterly earnings disclosures last week.Vedanta’s shares have fallen about 32% this year. “Vedanta trades at a massive discount to its fair value also due to concerns over the high debt levels at the promoter entities, especially Vedanta Resources,” according to Rahul Jain, an analyst at Systematix Shares & Stocks.Kyma, which was founded by Shah in 2018, has a history of activism, previously publicly voicing opposition to the debt restructuring plan of Spanish gaming firm Codere SA, whose bonds it owned. For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.