Vedanta Ltd plans to spin off businesses into several listed entities in a broad restructuring, which could help tycoon Anil Agarwal manage his metals-to-energy empire’s debt load.
The company has informed its lenders of the restructuring and could announce the plans in the coming days, people aware of the matter told Bloomberg.
Businesses including aluminium, oil and gas, iron ore and steel will be separately listed, they said, asking not to be identified as the information is confidential.
Vedanta Ltd’s parent, Vedanta Resources, will continue to be the holding company, the people said. Deliberations are ongoing and no final decisions on the structure or timing of the de-merger have been made, they said.
What raised the stakes for Vedanta Resources was a global increase in borrowing costs with about $2 billion of bonds due to be redeemed next year.
Moody’s Investors Service downgraded the parent's ratings this week, citing the elevated risk of debt restructuring over the next few months. The group’s August 2024 and March 2025 bonds are trading below 75 cents on the dollar, levels typically considered distressed.