The decision to synergise activities in oil exploration, mining and non-ferrous metal will save the group Rs1,000 crore per annum, Vedanta Resources’ chairman Anil Agarwal told reporters after meetings of the boards of the merging entities in Mumbai on Saturday
Mumbai: In a major revamp, billionaire Anil Agarwal-led metal and mining major Vedanta Resources Saturday decided to merge Sterlite Industries with Sesa Goa to create a $20 billion controlling entity for simplifying its group structure, reports PTI.
Merger of Sterlite Industries and Sesa Goa will lead to a new entity, Sesa Sterlite which will be the seventh largest natural resources company in the world.
The decision to synergise activities in oil exploration, mining and non-ferrous metal will save the group Rs1,000 crore per annum, its chairman Anil Agarwal told reporters after meetings of the boards of the merging entities here in the western Indian city.
Vedanta’s 38.8% stake in oil and gas producer Cairn India, which was acquired last year, will also be transferred to Sesa Sterlite with the related debt of $5.9 billion.
“This transaction is a natural evolution, leading to simplification of the Group’s structure,” Mr Agarwal said.
Shareholders of Sterlite will get three shares of Sesa Goa for every five shares held, as per the swap ratio fixed.
Eventually, they will become shareholders of Sesa Sterlite to be listed on bourses, after receiving regulatory approvals, including that of shareholders of the concerned companies.
Besides Cairn India, seven other group companies including Hindustan Zinc, Bharat Aluminium, Talwandi Sabo Power and Australian Copper Mines will become subsidiaries of Sesa Sterlite in which the London-listed Vedanta Resources will hold 58.3% stake.
However, Vedanta Resources will continue to directly control its African operations. This is the second restructuring attempt by the group after it faced opposition to the proposal in 2008.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
