BackVedanta mulls raising offer for Hind Zinc, Balco stakes
Vedanta currently has 64.9% while the government owns 29.5% in HZL, a publicly traded company
Premium
New Delhi: Vedanta Resources Plc. may raise its offer to buy the government’s stake in Hindustan Zinc Ltd (HZL) and Bharat Aluminium Co Ltd (Balco) and has asked shareholders to approve it on Tuesday, after its initial offer in January and repeated reminders cut no ice with the government.
Vedanta wants to pay 15% higher than the price offered initially for buying the government’s stake in HZL and an aggregate of $550 million for its stake in Balco, a circular on the company’s website said on Thursday.
On 9 January, Vedanta offered to acquire the government’s stake in HZL and Balco for $2.94 billion and $338 million, respectively. Vedanta wrote letters in April and July seeking to engage with the government on the same terms as the offer.
“To date, neither offer has been accepted by the government of India and, therefore, there is no certainty that either acquisition will proceed," it said in the circular, giving notice of a general meeting in London.
“Assuming the Sesa Sterlite merger and group consolidation are effected, if the entirety of the government’s interests are acquired, the group’s interests in HZL and Balco would increase to 94.4% and 100%, respectively and Vedanta’s economic interests in HZL and Balco would increase to 55% and 58.3%, respectively," it said.
Vedanta currently has 64.9% while the government owns 29.5% in HZL, a publicly traded company. In Balco, Vedanta holds 51% while the government owns the rest. Vedanta bought stakes in these two then state-run companies in the early 2000s when the government sold its stake.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
