Vedanta aims to resurrect Konkola float

Marion Dakers
INDIAN-FOCUSED miner Vedanta is looking to revive its float plans for copper miner Konkola in the coming months, after shelving the IPO in November due to market volatility.

Vedanta, which holds a 79.4 per cent stake in Konkola, aims to time the float to cash in on the commodities boom while steering clear of lingering market turbulence that has stalled several IPOs so far this year.

Vedanta said in its recent results that it would examine a listing of Konkola, a Zambian copper-mining operation, some time this year.

Vedanta pulled the plug on a float in November after only two days of marketing, but it is understood that the Zambian government, which owns the rest of the firm, remains keen to tap the London markets.

If successful, Konkola will be Zambia’s first London-listed firm – though Vedanta is expected to hold on to a majority stake.

Liberum Capital valued Vedanta’s stake in Konkola at $5.7bn (£3.5bn) at the time of the previous listing attempt in November. Since then, the price of copper has yo-yoed from around $8,500 a tonne to hit a peak of over $10,000 in January. Copper for a cash buyer closed at $9,006 a tonne on the London Metal Exchange on Friday.

JP Morgan and Goldman Sachs have been advising Vedanta and Konkola on the float.

Vedanta, led by Anil Agarwal, is currently awaiting government approval for its purchase of a majority stake in Cairn India for up to $9.6bn, having extended the share purchase deadline once more and announced a bond issue to fund the deal on Friday.