Set up in 1974, the Switzerland-headquartered Glencore is a mining and natural resources rival to billionaire Anil Agarwal-owned Vedanta group in several geographies.
The company said VRL and Glencore International had signed a loan agreement of $250 million on May 25. According to the agreement, VRL is required to procure certain actions on behalf of its subsidiaries, Westglobe, Richter Holding and Finsider International Company, or FICL (third-party obligors).
Post this, certain restrictions have been placed on Westglobe and Richter to sell, transfer or otherwise dispose of any shares held by them in FICL, and on FICL to sell, transfer or otherwise dispose of shares held by it in Vedanta Ltd, it said.
Besides this, a non-disposal undertaking (NDU) was executed on May 25 amongst FICL, Glencore and Catalyst Trusteeship, an onshore NDU agent. FICL has provided an NDU on 4.4 per cent shares, worth Rs 4,675 crore, of Vedanta that it holds, it said.
On May 25, Vedanta Ltd said it had pledged its entire 64.5 per cent stake in Hindustan Zinc to raise funds. A day later, Vedanta Ltd informed the stock exchanges that its promoter could not create a new charge on their 68 per cent stake in the company.