Sterlite offers Rs 16,000 cr to buy out HZL, Balco stakes
Sterlite Industries has offered to pay Rs 16,000 crore to buy government stakes in Hindustan Zinc (HZL) and Bharat Aluminium Company (Balco), in which the parent Vedanta group had acquired majority stakes a decade ago.business Updated: Mar 02, 2012 01:30 IST
Sterlite Industries has offered to pay Rs 16,000 crore to buy government stakes in Hindustan Zinc (HZL) and Bharat Aluminium Company (Balco), in which the parent Vedanta group had acquired majority stakes a decade ago.
While Sterlite Opportunities and Ventures holds 64% stake in HZL, Vedanta had acquired government’s 51% stake in Balco in 2001 for Rs 551 crore.
The government holds 29.5% stake in HZL and 49% in Balco.
“The government had asked us, if we will be interested to take its stakes in HZL and Balco. We answered in the affirmative,” said Anil Agarwal, chairman, Vedanta group. “As per the prevailing market price, we have offered Rs 16,000 crore for buying stakes. That was in January.”
The government does not seem to be happy with the valuation quoted by Vedanta and an empowered group of ministers which is looking into the matter had favoured a status quo till a fair valuation was arrived at.
Agarwal had said earlier that Vedanta did not receive any communication from the government and against this backdrop, it would not be possible for him to give any timeframe when the deals would be through.
“This is not in my hand. It is up to the government,” he said when asked to project a time-line for the acquisition.
The Vedanta Group is revamping its corporate structure by merging Sterlite Industries into another group firm Sesa Goa.