Vedanta unit buys into LCD glass maker AvanStrate

Vedanta Resources said its Cairn India subsidiary agreed to pay $158m for debt and a majority stake in AvanStrate, a Japanese maker of glass for LCD devices.

Cairn will pay $151m for AvanStrate debt with face value of $299m and will lend $7m to the company. It will also acquire about 51% of AvanStrate's equity for a nominal sum from Carlyle Group, the private equity firm. The deal was expected to complete before 31 December.

AvanStrate makes glass for use in smartphones, cameras, televisions and other devices with LCD screens. Vedanta, the metals and mining group, said AvanStrate focuses on small and medium devices that have potential for growth in India.

"Further to Vedanta's focus on providing basic materials for the development of India and other emerging markets, this transaction provides optionality to the growing market of materials for technology applications," Vedanta said.

In its last financial year, AvanStrate had revenue of about $169m, earnings of $75m and gross assets of $625m. Its net profit was $1.4m.