Vedanta to delist from London Stock Exchange

India-focused Vedanta Resources is planning to delist from the London Stock Exchange.

Volcan, a holding company owned by a trust controlled by Vedanta's chairman Anil Agarwal, has made a £778mn ($1.02bn) offer to buy the 33.65pc of Vedanta that it does not already own. The offer, at 825p/share, values Vedanta at £2.33bn and is a 27.6pc premium to its closing price on 29 June.

Vedanta is likely to maintain its listing on the Bombay Stock Exchange. The maturity of the Indian capital markets means an Indian listing provides a sufficient avenue for raising capital, Agarwal said. The company is also looking to simplify its corporate structure.

Vedanta, which owns copper, aluminium, iron ore, crude and steel businesses, has been facing significant environmental pressure on its operations. Several people were shot dead by police in India's southern state of Tamil Nadu in May as they demanded the closure of Vedanta's copper smelter in the area.

Vedanta's iron ore business is also largely shut down. The Supreme Court suspended mining in the coastal state of Goa, where most of its iron ore mines are located, from 15 March. The company's mines in Karnataka state continue to operate. It recently entered the steel business by acquiring bankrupt Indian firm Electrosteel.