Bulletin: Vedanta Resources PLC Rating Not Affected By Potential Open Offer And Delisting By Parent

SINGAPORE (S&P Global Ratings) July 3, 2018--S&P Global Ratings said today that an expected open offer and subsequent delisting will not affect the credit ratings on Vedanta Resources PLC (VRPLC, FC: B+/ Stable/--). Parent Volcan Investments Ltd. is preparing to make an open offer for all remaining public shares of VRPLC. Volcan intends to increase its stake from 66.53% to 90% or more and if successful, is likely to delist VRPLC from the London Stock Exchange. The all-cash offer of 825 pence a share would cost Volcan £778 million if it successfully acquires the remaining 33.47% ownership in VRPLC. We believe VRPLC is the key cash flow generating asset for Volcan and hence VRPLC may need to increase dividends post

...SINGAPORE (S&P Global Ratings) July 3, 2018--S&P Global Ratings said today that an expected open offer and subsequent delisting will not affect the credit ratings on Vedanta Resources PLC (VRPLC, FC: B+/ Stable/--). Parent Volcan Investments Ltd. is preparing to make an open offer for all remaining public shares of VRPLC. Volcan intends to increase its stake from 66.53% to 90% or more and if successful, is likely to delist VRPLC from the London Stock Exchange. The all-cash offer of 825 pence a share would cost Volcan ú778 million if it successfully acquires the remaining 33.47% ownership in VRPLC. We believe VRPLC is the key cash flow generating asset for Volcan and hence VRPLC may need to increase dividends post the transaction, should Volcan fund the acquisition using debt. However, we do not anticipate that a somewhat higher dividend payout by VRPLC will have a significant impact on its cash flow leverage ratios. We believe VRPLC will remain on track to meet our forecast ratio of funds...

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