LONDON -(Dow Jones)- Vedanta Resources PLC (VED.LN) said Thursday its subsidiary, Sterlite Industries India Limited (SLT) is increasing its offer, for the purchase of substantially all of the operating assets of ASARCO LLC by $500 million, and has proposed to support a plan of reorganisation that is intended to pay creditors in full their allowed amount of claims and full post petition interest.
MAIN FACTS:
-With this improvement, the revised total consideration will increase to cash at closing of $2.1 billion.
-While there is an increase in the cash consideration, Sterlite will receive a 72.5% interest in the Litigation Trust to be setup by the Debtor in Possession (Asarco LLC) at closing of the transaction to pursue a judgement against Americas Mining Corporation awarded by the U.S. District Court of Texas, Brownsville Division.
-The 9 year Copper Price Participation Note of $207.9 million and the put option granted to the Asbestos Creditors against their share of 27% litigation interest remain unchanged.
-All the other terms and conditions of the agreement remain unchanged.
-Asarco had total revenues of nearly $1.9 billion and profit before tax of $393 million, for the year ended Dec. 31, 2008.
-By London Bureau, Dow Jones Newswires; Contact Ian Walker; +44 (0)20 7842 9296; ian.walker@dowjones.com