Despite a 64.2% in total third-quarter revenues, Indian mining conglomerate Vedanta (LSE: VED) is reportedly considering spinning off several of its interests but would retain controlling interests in each of the separately listed companies.
The UK newspaper The Independent Sunday reported a number of leading mining bankers in London have been asked to review plans for the listings.
The Independent quoted an unidentified bank who said, "The company is all over the place, with some assets here and others there. Some of the listings might happen this year. They will be ‘verticals' [specializing in certain areas], a full-scale reorganization. They are all of sufficient size that each business could attract enough capital to grow."
Unidentified advisers told the Independent that most of the Vedanta listings will end up in India and Hong Kong. However, some advisers have reportedly to Vedanta that London would be a suitable location for some spin-offs.
For the first nine months ended December 31, 2009, Vedanta reported a 34.7% increase in alumina production to 559,000 tonnes, and a 14.3% increase in aluminum production to 375,000 tonnes. Refined zinc production increased 6.7% to 428,000 tonnes during the same period while refined lead production increased 10.6% to more than 4 million tonnes. Silver production increased 48.2% to 2,712,000 ounces as iron ore production increased 22.5% to 11.1 million tonnes.
Last October Vedanta subsidiary Sterlite Industries spun out its energy division into Sterlite Energy.
The Independent said Vedanta wants a copper flotation to value the new business at $10 billion. One source claimed the listing will be of a size that would place them on the cusp of the FTSE 100.
Disclosure: The author holds no positions in the company