Anglo American share price rises as Indian tycoon Anil Agarwal invests £2bn in the miner

 
Caitlin Morrison
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Anil Agarwal is the founder and chairman at Vedanta Resources

Shares in Anglo American have shot up this morning, after Indian tycoon Anil Agarwal made a bid to take a 12 per cent stake in the miner.

The stock was up 9.2 per cent at pixel time.

The mining boss announced last night that he plans to invest up to £2bn in Anglo by issuing a mandatory exchangeable bond.

"This is an attractive investment for our family trust," said Agarwal.

"Anglo American is a great company with excellent assets and a strong board and management team who are executing a focused strategy to drive shareholder value."

Agarwal owns Vedanta Resources, which was also surging on the stock market today, with shares up 4.5 per cent.

The Indian billionaire made the investment through Volcan Investments, the majority shareholder of Vedanta, in a deal arranged by JP Morgan. The bond will be issued on or around 11 April.

Vedanta confirmed last night that the"proposed investment is being made by Volcan alone, and that the Company is not participating in Volcan's investment".

"Vedanta is committed to its strategic priorities, including ramping up production from its portfolio of low cost assets, increasing its free cash flow, and continuing to optimise and deleverage its balance sheet," the miner said.

Anglo's soaring share price helped push the FTSE 100 to new record highs in morning trading: the index has broken the 7,400 mark for the first time.

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