(Bloomberg) -- Vedanta Resources Ltd. is in talks with banks for a further $600 million to finance the delisting of its Indian unit, according to people with knowledge of the matter.
The London-based commodities conglomerate has already secured $3.15 billion in loans and bonds to buy back the shares it doesn't hold in Vedanta Ltd. The company would use the extra funds to cover any shortfalls for the proposed offer of the delisting, the people said, asking not to be identified because the discussions are private.
Read about Vedanta's delisting plan in India
Vedanta, which has interests in zinc, aluminum and oil and gas, announced plans for its Indian unit to go private in May. The company has been buffeted by volatile commodity prices because of weakened demand amid the coronavirus pandemic. Shareholders will be given the option to offer a price to tender their shares back to founder Anil Agarwal who's seeking to simplify his investments.
The firm is in the final stages of arranging the additional funding lines as it awaits approval from the Securities and Exchange Board of India to go private, the people said. A spokesman for Vedanta declined to comment.
Shares in Vedanta Ltd. erased losses after Bloomberg reported the funding plans and the stock was trading 1% higher at 2:12 p.m in Mumbai.
Read more about Vedanta's fundraising plans
The additional $600 million loan could be for three to six months and would be backed by dividend income or cash accrued from Vedanta Ltd.'s cash-rich subsidiary Hindustan Zinc Ltd., the people said. Details of the deal are yet to be finalized and the plans could change, they said.
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