Indian billionaire Anil Agarwal took the first opportunity following the expiry of the six-month waiting period imposed after his initial investment in Anglo American to up his stake. Anglo American shares gained 2.5% to R237.70 after Vedanta Resources announced to the London Stock Exchange that its majority shareholder, Volcan Investments, was planning to invest another £1.25bn-£2bn in the company. Depending on the Anglo share price, that could be about 8%-9%. Volcan is Agarwal’s family trust. The second investment would bring Volcan’s stake in Anglo to about 20%-21%, as it bought 12.43% in March for about £2bn. It was then obliged to wait six months, and will have to wait another six months if it wishes to buy more Anglo shares, under UK stock exchange rules designed to stop "creeping takeovers".Volcan will issue a three-year bond secured by Anglo shares to finance the purchase, but even though it does not have unencumbered ownership, it can still vote the shares. The latest purch...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.