Vedanta Share Discussion Threads

[mustau] 25/9/2017 16:30

Lint,

May just get under 8 tomorrow.

[linton5] 22/9/2017 08:34

I'm waiting patiently this week on direction for a healthy top up,but it's still unsure so into next week now🤔

[smurfy2001] 21/9/2017 13:32

We believe that the structure is similar to the one that was set up in Mar’17, which resulted in VI acquiring c13% of AAL’s ordinary shares. In additional to its direct 1.4% interest in AAL, VI will now have voting rights of c22% of AAL’s ordinary share capital; AAL’s second largest shareholder is SA’s Public Investment Corporation at 14%. The innovative structure set up in Mar’17 allowed VI to “borrow” its AAL shares for a three year period and was financed through a cUSD2.4bn mandatory exchangeable (convertible) bond with annual coupon payments of c4%pa. While VI has acquired the voting rights for these AAL shares, any dividends paid by AAL must flow through to the lender of the shares. The cost of the CBs are carried by VI and in Mar’20, VI will have the option of either retaining the AAL shares or redeeming the CBs in cas

Providing a platform for VED to merge with AAL is the obvious motive and using this structure has avoided VI paying a market premium to potentially acquire a significant block of AAL shares. While Agarwal has again stated that VI does not intend to make an offer to minorities, what this acquisition does do is give VI (and possibly VED) some strategic options in the advent that AAL becomes a corporate play at some future date. However, being Chairman of VED will make a motivation for a merger between AAL and VED even more difficult due to the inherent conflict of interest and potential corporate governance issues and more so given that AAL will (again) likely rebuff (and rightly so in our opinion) any attempt by VED or VI to merge the two companies. However, if AAL were to break up, depending upon what may transpire, maybe there would be some opportunity for some future deal-making, but again VI will also need to be mindful of the corporate governance difficulties that such a strategy may unfold. The bottom line is that if VED wants to acquire AAL, it would need to pay a full price; of course if this were to happen, VI would benefit.

We see this investment as bringing Anil Agarwal to a position where he will be able to have a material say on any corporate a evolution (as well as having a very concentrated bet on commodity upside and/or Anglo rerating upside).

We recently spent a day with Anglo American and this reinforced our view on the compelling value story within the equity. Obviously, this investment should be seen to support this view, but we see this value story having been significantly enhanced by the recent deleveraging, which opens up optionality on the international balance sheet and hence strategic options. Management is focusing on potential high return investment at operations like Grosvenor and Orapa, a lowest quartile copper growth project in Quellavecho, and innovation, with some interesting potential implications for their copper cost positioning. This will occur while deleveraging continues to progress which should help to rerate the company, even in the absence of an eventual South African divestment/restructure. South Africa itself, especially Kumba with strong grade and lump premiums, is generating c. 7% of the c. 20% free cash yield and most of the dividend. Anglo equity also has a positive embedded option from the sense that a more business-friendly ANC leader emerging from the Leadership Conference in December could help to significantly close the valuation discount, in our view.

It remains to be seen if there are further ambitions from Volcan, but if anything we believe this should help to support to upside case and potentially accelerate a corporate restructuring. We continue to favour Anglo American amongst the London diversified miners.

[mustau] 21/9/2017 08:45

Guess plan is to gift us with aal!!

[smurfy2001] 21/9/2017 08:10

Well AAL is boosting nicely no idea WTF the chairman is doing though, not helping this stock at all !

[linton5] 21/9/2017 07:25

Mr argwal is certainly propping up Aal up 6.5% in USA after news lol

[mustau] 21/9/2017 07:00

Not today??

[malcolmmm] 20/9/2017 23:19

Technology stocks are too high, mining stocks are again in favour.

[linton5] 20/9/2017 22:07

Yellens speech, stronger dollar. Hope I'm wrong guys

[mustau] 20/9/2017 21:18

Seems markets got wind of the news.
can't understand this rationale unless the intent is to align both. Let's hope no drop am.

[salver2] 20/9/2017 20:13

Why drop - explain your rationale!!

[linton5] 20/9/2017 19:25

Looks like a drop tmmw then aaaaaaagh

[smurfy2001] 20/9/2017 17:41

Billionaire Agarwal to Boost Anglo Stake by Up to $2 Billion

Anil Agarwal, an Indian mining billionaire, plans to purchase as much as 1.5 billion pounds ($2 billion) worth of additional Anglo American Plc shares, increasing his stake in the blue-chip British miner that’s benefited from a recovery in commodity prices.

Agarwal said Wednesday the purchase, which is the equivalent of about 9 percent, was a family investment and he doesn’t intend to make a takeover offer for the company, according to a statement. It comes on top of the 12.43 percent stake he’s built since an announcement in March that his Volcan unit was investing in the company.

[smurfy2001] 20/9/2017 17:40

WTF is he doing?

---

Volcan Investments Ltd ("Volcan"), the majority shareholder of Vedanta Resources Plc (the "Company"), has today announced that it intends to make an additional investment in Anglo American Plc shares of GBP1.25 billion to GBP1.5 billion.

[linton5] 20/9/2017 17:23

Mr argwal has a big plan for Anglo American through his investment company spending another bill on it.im sure it will be plain for all to see by summer 2018

[fruitninja84] 20/9/2017 16:33

*plan. Obviously this is a lot easier to do (psychology) when your already in the money on a trade and it also risks off a bit (averaging up) this is how I have always done it. If it tanks below 8 I will just take a lean profit on my existing holdings...

[fruitninja84] 20/9/2017 16:28

@linton. I already hold from £7 and 7.8. My trading play is simply to add more but not in a falling market. It's likely I will get a 3rd hit if tomorrow becomes blatantly obvious that the uptrend continues (obv I will keep an eye on the fed meeting tonight) and get my last lot as a possible spread bet if £9 breaks for a total target of £10 ora bit higher. This trade has been a month in the making and planning. Sounds okay?

[linton5] 20/9/2017 16:22

Wat a fanntastic start of a rise, hurry up chapoos catch the bus ride

[linton5] 20/9/2017 16:08

Did you strike 3 bells or 3 plums fruit (I bet you did nothing lol)

[bigbigdave] 20/9/2017 11:56

Just buy and hold for 5 years, whole mining sector is in recovery.



....and hopefully not have a heart attack with some of the violent swings :o)

[linton5] 20/9/2017 11:54

Ved doesn't p--- about be quick on your decision fruit,are you watching anything else?

[fruitninja84] 20/9/2017 11:44

Im waiting for some direction here so i can strike! Its either going to move swiftly up to £10 or chortle downwards slowly imo. Once i can call it I'm either buying or selling.

[linton5] 18/9/2017 10:41

Cheers smurfy it's the one chart I always check weekly for years ( patience ain't the word watching it😳

[linton5] 18/9/2017 10:34

I noticed the CRB commodity index is on the cusp of a breakout from a 4year down trend chaps. (Fingers crossed) then it would be of to the races for mining stocks