In a move set to make him the biggest shareholder in the London-listed miner, Vedanta Resources chairman Anil Agarwal has announced his plans to increase stake in Anglo American to about 20 per cent. In a statement issued by his family trust, Volcan, he said it would acquire an additional £1.25bn to £1.5bn of Anglo shares from investors funded by exchangeable bonds. Agarwal said he had no intention of taking a takeover offer for Anglo, comments that, in effect, prevent him from launching a bid for six months under UK takeover rules.
He said, “We are encouraged by the performance of Anglo American since our original investment earlier this year. The company has made good progress in its operational and financial performance and remains an attractive investment for our family trust.” His company Vedanta said “the company is not participating in this investment.” With mining operations across the world, Vedanta's most important assets are located in India where it is the largest producer of industrial metals and a significant power generator.
Since Agarwal made his initial purchase in March, Anglo shares have by risen about 8 per cent, roughly tracking the performance of its peer group. His latest raid will come as an early test for Stuart Chambers, Anglo's chairman-designate who has been involved in several big takeovers, including the sale of UK chip designer Arm Holdings.
