sterlite-secures-asarco-for-17-billion

Sterlite secures Asarco for $1.7 billion

The Indian mining group negotiates a new deal to take over US-based Asarco, reducing its offer by $900 million to account for falling copper prices.

Indian miner Sterlite Industries and its London-based parent Vedanta Resources announced on Friday a new deal to acquire substantially all the operating assets of Arizona-headquartered Asarco for $1.7 billion, down from $2.6 billion agreed in May 2008.

The consideration is split into $1.1 billion of cash plus a senior secured, non-interest bearing promissory note of $600 million. On behalf of Sterlite, ABN AMRO has issued two letters of credit totalling $100 million to secure the sale agreement and will issue an additional $25 million letter of credit on receipt of certain bankruptcy court approvals.

The note is back-ended, payable over nine years and its principal amount will be adjusted post-closing based on Asarco's working...

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