Vedanta defers biz restructuring plan

Vedanta defers biz restructuring plan


Mumbai: NRI billionaire Anil Agarwal-led Vedanta Resources has said that the group will not immediately pursue the $9.8 billion corporate restructuring plan due to the ongoing global financial crisis and shareholders’ feedback.

“In view of the recent changes in global financial markets and investor feedback, Vedanta has decided not to pursue the proposed group structuring," Sterlite Industries, the Indian subsidiary of UK-based Vedanta Resources, informed the Bombay Stock Exchange.

However, the company said it remains committed to simplifying and streamlining its corporate structure in the interests of all shareholders.

On 9 September, the group had announced to simplify the structure into three verticals — copper and zinc-lead, aluminium and energy, and iron ore.

Under the proposed restructuring scheme, Sterlite would have demerged its aluminium and energy businesses to Madras Aluminium Company Ltd from 1 April, 2009.

According to the earlier demerger plan, Sterlite would have issued one share for every 51 equity shares held in Malco.