Vedanta to demerge five businesses into separate listed firms
Vedanta Ltd will continue to hold 65% of Hindustan Zinc Ltd., as well as the new businesses of stainless steel and semiconductor/display.
Mining conglomerate Vedanta Ltd on Friday announced plans to demerge five of its key businesses, including aluminium, oil and gas, and steel, into separate listed entities with a view to creating shareholder value.
"The de-merger is planned to be a simple vertical split, for every 1 share of Vedanta Limited, the shareholders will additionally receive 1 share of each of the 5 newly listed companies," the firm said in a stock exchange filing.
The Board of Vendata Ltd approved "a pure-play, asset-owner business model" that will result in aluminium, oil and gas, power, steel and ferrous materials, and base metals being demerged and listed separately.
will continue to hold 65% of Hindustan Zinc Ltd., as well as the new businesses of stainless steel and semiconductor/display.
The entire exercise is proposed to be completed in 12-15 months.
Edited by Suman Singh