Anil Agarwal, founder and Chairman of Indian firm Vedanta Resources Plc, will buy between £1.25 billion to £1.5 billion worth of shares in Anglo American, Rough & Polished reports.
According to the piece, the investment will be made through Agarwal’s family trust, Volcan Investments. Currently, Volcan has voting rights in Anglo of 12.43%. The precise stake that Volcan would control in Anglo after this latest transaction will only be known upon its conclusion; the assumption is that Volcan will boost its stake in Anglo American to about 20%.
In August, Ratings agency Standard and Poor’s (S&P) gave Anglo American, owner of diamond miner De Beers, a stable outlook. S&P raised the company’s long and short-term corporate credit ratings to BBB-/A-3 from BB+/B, as well as its long-term South Africa national scale rating to zaAAA from zaAA+, according to Mining Weekly.
