NRI billionaire Anil Agarwal-led Vedanta Resources is likely to demerge its aluminium division, says a media report.
"The new firm will be the world's fourth biggest aluminium player, behind Russia's United Company Rusal, America's Alcoa and China's Chalco," British daily The Independent has reported.
The daily said the mining major is ready to begin "a massive break-up of its business with the demerger of its $20 billion (13 billion pounds) aluminium division".
According to the report published on Saturday, over the next few years, Vedanta intends to spin-off five or six businesses, which include zinc, iron ore and power, though it would retain controlling interests in all of them.
The daily added that once a confusing share-ownership structure is cleaned up, the business would then start trading in Mumbai, with a secondary listing to take place in either London or New York.
"Only about 10 to 15 per cent of the company would be listed, raising up to $3 billion. The initial public offering should take place by the end of the year, with even June considered a possibility if the legal process is completed quickly," the report noted.
Quoting a source, the report said that Vedanta Resources' aluminium interests have a "potential value of $20 billion; the overall group is only worth about $11.3 billion, but the complicated conglomerate model leads to some investors shunning the stock".
