An iceberg of debt appears to threaten Vedanta Resources
- It’s looking for a debt roll-over even as investors chew their nails
Indian billionaire Anil Agarwal is shuffling the deck chairs as his Vedanta Resources approaches a $3 billion iceberg of dollar bonds due over the next two years. Can the commodities titan avoid the fate of the Titanic? The answer may only partly depend on investors’ greed for dividends. Vedanta Ltd, the Indian publicly traded firm controlled by privately held Vedanta Resources, has announced a plan to split itself into six firms. For every share of Vedanta Ltd, investors will receive one share in each of the five new businesses: aluminium, oil and gas, power, steel and ferrous, and base metals. They will also retain their original share in Vedanta Ltd, which will continue to own 65% of Hindustan Zinc, apart from hosting new bets like semiconductors and LCD displays.