HC gives nod to Sesa-Sterlite merger
PTI, MUMBAI | 13 August 2013 22:19 IST
The decks have been cleared for the much-delayed merger between Vedanta group companies Sesa Goa and Sterlite Industries , with final regulatory clearance received in the form of approval from the Bombay High Court.
A division bench of the court at Goa on Monday gave its nod for the merger and rejected a review petition filed by a shareholder challenging the earlier approval granted by a single bench, Sesa Goa said in a statement.
The Sesa Goa-Sterlite merger, announced in February 2012, has received all other regulatory clearances. "The Division Bench of the High Court of Bombay at Goa vide its order dated August 12, 2013, has dismissed the appeal filed by a shareholder of Sesa Goa Ltd and sanctioned the scheme of amalgamation and arrangement amongst Sterlite Industries (India) Ltd...and Sesa Goa Ltd and their respective shareholders and creditors...," Sesa Goa said.
Vedanta's chief financial officer DD Jalan had said in July that chances of a further delay in completing the merger would be remote once the court's approval is received. The decision, however, can be challenged in the Supreme Court.
The merger is aimed at creating a mega Indian natural resources giant. It is expected to be the seventh-largest global diversified natural resources major by EBITDA, Vedanta had said in a statement on February 25, 2012.
As per the scheme, Sesa Goa and Sterlite Industries will merge to create a new entity, Sesa Sterlite. Vedanta will hold 58.3 percent in Sesa Sterlite, and the group's 79.4-percent shareholding in Konkola Copper Mines Plc will continue to be directly held by Vedanta. All other group entities will be controlled by Sesa Sterlite.
After creation, Sesa Sterlite will have total assets worth USD 36 billion (Rs 1,95,000 crore), net income of USD 1.9 billion (Rs 10,000 crore) and cash and liquid investments of USD 7.7 billion (Rs 42,000 crore).
It will also inherit almost 87 percent of Vedanta's debt, which was USD 16.593 billion in March 2013, as loans taken to fund the Cairn India acquisition get transferred to Sesa Sterlite. Accordingly, Sesa Sterlite will have a debt of USD 14.399 billion.
The merger will result in a Rs 1,000 crore annual saving for Vedanta through a reduction in debt-servicing cost. Sterlite shareholders will get three shares of Sesa Goa for every five shares held, according to the swap ratio.
Cairn India , Hindustan Zinc, Balco, Vedanta Aluminium, Madras Aluminium, Western Clusters in Liberia, Talwandi Sabo Power and Australian Copper Mines will become subsidiaries of Sesa Sterlite after the restructuring.
Drop a comment
Latest News
- Vedanta's arm wins contract to develop MPT berths
- Miscalculations on Mining pushes Goa into huge deficit of Rs 1000 crore!
- Pale farmers threaten not to allow Chowgule to start mining
- Are BJP MLAs, Govt colluding with Sesa to transport ore illegally?
- Children should rebel against the trend of ‘classes’: Gupta
- Truck transport begins tomorrow; but strictly for e-auctioned ore!
- Striking truckers begin talks with Sesa, CM goes tough
- Striking truckers also reject CM’s 3-slab formula
- Truck owners and Sesa workers clash physically, 10 injured
- 4 more mining trucks stoned, ore transportation stops once again
Mining
- SC again stops Goa mining from 16 March, orders fresh ECs & recover dues
- NGT orders 25 miners to appear before MoEF, face closure threat
- Fearing another attempt of arrest, Digambar seeks interim bail
- Goa police summons Ex-CM Digambar in mining scam
- Dr Claude supports AAP stand on mining, with objections
- New SC order likely to halt mining of 40 leases, until…
- Centre to hold all-state meet in Goa on illegal mining
- Caurem tribals march to Panaji, approaching SC to expose illegalities
- Will Govt probe both Ravindra and Fomento, if it was a bribe?
- Was crop damage compensation to Caurem shown as extortion by Fomento?
