India's Vedanta to spin off four commodity companies -source

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Indian conglomerate Vedanta Ltd will separate its commodities businesses into four companies to get better valuations, a source with direct knowledge of the move told Reuters on Thursday.

will separate its commodities businesses into four companies to get better valuations, a source with direct knowledge of the move told Reuters on Thursday.

The move will need shareholder and other regulatory approvals and the process could take two to three months, the source said, declining to be named as they are not authorised to speak to the media.The company was valued at 776.29 billion rupees as of Wednesday, down by about a third so far this year. Its shares climbed 1.2% on Thursday morning following the reports of a split.

Vedanta Resources, the UK-based parent of Vedanta Ltd, should be bringing in equity investors, instead of the debt-swap moves they have been doing, due to its debt repayment issues, said Deven Choksey, managing director of KRChoksey Shares and Securities.

 

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