Vedanta Limited: Strategic Restructuring to Tackle Conglomerate Discount
商品編號：W36958
出版日期：2024/06/17
再版日期：
商品來源：
商品主題：Finance; General Management/Strategy
商品類型：Case (Pub Mat)
涵蓋議題：Corporate Restructuring;Spinoffs;Firm Valuation
難易度：4 - Undergraduate/MBA
內容長度：15 頁
地域：India
產業：Mining; Quarrying; and Oil and Gas Extraction
事件年度：2023
Vedanta Limited (VEDL), an Indian conglomerate, operated in natural resources business segments, including aluminum, power, steel, oil and gas, and base metals segments such as copper, zinc, lead, silver. In September 2023, the company’s market value was approximately half of its intrinsic value, as its individual business segments were estimated to be worth significantly more operating independently.
The chair of VEDL needed to take the necessary steps to enhance shareholder value by unlocking conglomerate discounts. The combined segments were perceived to generate negative synergies for the conglomerate, as indicated by the trading multiples of comparable companies. In looking for viable ways to eliminate the discount, he had to choose among the following options: (1) a share repurchase, (2) divestiture, (3) a spinoff of one or more segments, or (4) a spinoff of all segments.
教學手冊：Vedanta Limited: Strategic Restructuring to Tackle Conglomerate Discount - Teaching Note
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