Vedanta Limited, an India-based mining company, has announced that its overseas subsidiary Cairn India has exited Anglo American (ahead of the planned schedule) in which it had bought a stake last year from parent trust Volcan Investments, for $200 million.
According to the company, the unwinding of the structured investment has come as share prices of Anglo American have doubled since the investment was entered into last year in December. This has returned over a $100 million worth of net gains to Cairn India during the eight months.
Cairn India had bought about 2% in Anglo American last year in December from Volcan Investments which is a family trust of promoter Anil Agarwal and holds 19% in Anglo American Plc. Anglo American is witnessing record growth in earnings due to the surge in iron ore prices. The South African platinum, diamond and base metals miner has announced a share buyback of $1 billion as it reported its best-ever half-yearly earnings since 2011.
