Vedanta to tie up with investor, set up specific fund to bid for BPCL

Anil Agarwal company to invest $500 mn in LCD facility

Anil Agarwal-owned Vedanta will tie up with an investor to set up a specific acquisition fund to make a bid for Bharat Petroleum Corporation which is slated for privatisation by the Indian government.

Vedanta said in case BPCL transaction culminates, it may undertake management of the acquired business, through appropriate profit-sharing arrangement or on management fee model. “A specific fund, with a strategic investor, will be set up to fund the potential investment, without leveraging Vedanta’s balance sheet,” the company said in a statement today. 

While ruling out any spin-offs of its existing businesses, Vedanta said its capital allocation policy