Vedanta Oil and Gas Limited Announces Creation of Encumbrance Under Facility Agreement
Vedanta Oil and Gas Limited (VOGL), formerly known as Malco Energy Limited, has announced the creation of an encumbrance over its equity shares. The action stems from a facility agreement dated 15 July 2026, involving a total commitment aggregating US$ 1,000,000,000.The arrangement was executed among Twin Star Holdings Ltd. as the borrower, and Vedanta Resources Limited (VRL), VHMLII, and Welter as guarantors. Citigroup Global Markets Asia Limited and Standard Chartered Bank acted as the arrangers, while Citibank, N.A., Hong Kong and Standard Chartered Bank served as the original lenders. GLAS Agency (Hong Kong) Limited acts as the agent and security agent under this agreement.
Terms of the Facility Agreement
The facility agreement includes specific conditions regarding the shares of VOGL:- No Obligor, including TSHL, VRL, VHMLII, and Welter, shall create or permit any security or quasi-security over the shares of VOGL.
- Members of the VRL group are prohibited from creating or permitting any security or quasi-security over shares owned by them in an Obligor that owns shares in VOGL.
- If VOGL becomes a Material Subsidiary of VRL, the VRL group is required to maintain control over VOGL or continue to own at least 50.1% of the issued equity share capital of VOGL.
The company noted that these conditions and arrangements fall within the definition of an encumbrance regarding its shares.
Shareholding Details
The announcement confirms that GLAS Agency (Hong Kong) Limited, acting as agent for the benefit of the lenders, holds an encumbrance over 2,204,724,753 equity shares. These shares represent 56.38% of the total issued equity share capital of VOGL.The following table outlines the ownership details:
| Detail Description | Value |
|---|---|
| Number of Shares (Encumbered) | 2,204,724,753 |
| Percentage of Total Share Capital | 56.38% |
| Equity Share Listed Capital Before Acquisition | ₹ 3,910,388,057 |
| Equity Share Listed Capital After Acquisition | ₹ 3,910,388,057 |
The company clarified that GLAS Agency (Hong Kong) Limited maintains an existing encumbrance over these same shares related to the issuance of guaranteed senior bonds by Vedanta Resources Finance II PLC. Consequently, the total holdings before and after this specific announcement remain unchanged.
VOGL Stock Price Movement
Shares of Vedanta Oil and Gas Limited on Friday slipped by 2.25% to settle at ₹35.60. The stock saw significant activity with a total volume of 44.81 million shares traded during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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