LONDON — The Indian billionaire owner of Vedanta Resources, Anil Agarwal, appears to have his eye on taking over Anglo American or at least the South African arm. Agarwal owns about a fifth of the mining giant after a complex deal in 2017 allowed him to swap bonds into a near 20% stake in Anglo in 2020. Rumours are abounding that Agarwal may be looking to splitting up Anglo into a South African company focusing on platinum and iron, while the international arm concentrates on the copper and diamond assets. Since a low in its share price in 2016 of below £5, the company has done well under the leadership of CEO Mark Cutifani and traded at around £20 a share this week. It has also shed its non-core assets and cleaned up its portfolio and executives believe they are now poised for sustainable growth. Cutifani appears to be taking rumours that Agarwal has brought in JP Morgan to help him in his bid for Anglo as a sign that he needs to put up his defences and is said to have hired three investment banks to help him ward-off a take-over. – Linda van Tilburg
Anglo steps up defense to repel Agarwal’s interest: Telegraph
Agarwal has previously stated he had no intention to take over the miner, but bankers think he is now working with adviser JP Morgan Chase & Co to help finance a bid as soon as September, the British newspaper said.
Also read: Anglo may switch SA listing for Toronto or London
Anglo American’s defense advisers, Morgan Stanley, Goldman Sachs Group Inc. and Centerview Partners LLC, are said to plan attacks on the quality of Vedanta’s portfolio compared to Anglo’s assets, while Agarwal’s environmental track record is also likely to come under scrutiny, according to unidentified people cited by the Telegraph.
The mining tycoon increased his stake in Anglo American to more than 20% in September 2017 through a mandatory convertible bond maturing in 2020. Although Agarwal’s intentions are unclear, the approaching deadline is said to have put Anglo’s management on high alert, the Telegraph said.
