Vedanta buoyed by shake-up
Miner Vedanta, responding to speculation it could merge two separately listed Indian subsidiaries, said yesterday it aimed to simplify and consolidate its structure. The FTSE 100-listed company trades at a discount to the sector, because of its gearing and because of a structure which means it finds it harder to repatriate cash from subsidiaries to service group debt. Reports had said Vedanta was considering a move to restructure Sterlite and Sesa Goa, potentially merging the two. It owns almost 55 per cent of Sterlite and just over 55 per cent of Sesa Goa. The company’s shares jumped by seven per cent after it confirmed some restructuring.