This may be a good match
Behind Anil Agarwal’s audacious bid for Anglo
Anglo American’s relatively low share price has opened the door to new takeover possibilities
Anil Agarwal’s £2bn purchase of an effective 13% in Anglo American, through a bond issued by his Volcan Investments family trust, is well-timed. Investec Securities says corporates are seeing value in Anglo that the market has ignored. Investec estimates Anglo’s unlisted assets (which include De Beers, Minas-Rio and its base metals) are only valued at 38% of their true worth. It sees 48% upside on the shares to 1,706p (about R269) against the 1,195p when its commentary was issued. Volcan is the major shareholder in Vedanta Resources, whose core commodity, zinc, has surged in price over the past year. The move also comes shortly after the announcement of the retirement of Anglo’s chairman, Sir John Parker, at the next annual general meeting. Agarwal has said he will not seek a board seat but there are no legal barriers to appointing him, and he has 12 years of experience chairing a London-listed company. Since Agarwal admitted in an interview with Bloomberg at Davos in January that h...
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