Vedanta eyes aluminium unit spin-off

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Indian-focused mining group Vedanta is planning to spin off its aluminium division with an announcement regarding a demerger due as early as this week, said UK newspaper the Independent on Sunday.
The paper said the London-listed group will apply to the Indian courts to demerge the aluminium division, a process which could take two to three months, before listing 10 to 15% of the unit in Mumbai, with a secondary listing in either London or New York.
It said the flotation would raise up to USD 3 billion and should take place before the end of the year, or at some point from June if the legal process is completed quickly.
The Independent on Sunday said Vedanta was pursuing a strategy of spinning off five or six businesses as it considered the group was currently undervalued as investors shunned the complicated conglomerate structure.
Morgan Stanley, Credit Suisse and JP Morgan Cazenove are advising Vedanta, the paper said.
Vedanta declined to comment on the report.