Hindustan Zinc's all-cash bid for Vedanta's assets lapses - sources
NEW DELHI - Hindustan Zinc's proposal to buy certain zinc assets from Vedanta Group for $2.98-billion in cash has lapsed as the Indian miner did not get shareholders' approval within the stipulated time limit, said two government sources.
The deal was announced in mid-January, after which Hindustan Zinc had three months to call an extraordinary general meeting to seek approval from its minority shareholders, according to Indian rules for listed companies.
"The issue is dead because three months have lapsed," said the first government official.
In March, Hindustan Zinc declared a final dividend of 110-billion rupees ($1.34-billion), tying up its cash reserves through which it was planning to fund the acquisition, the source noted. Its consolidated gross investments and cash and cash equivalents of 164.82-billion rupees as of December 31.
The sources asked to be anonymous as they are not authorised to speak to the media.
The Indian government is the largest minority shareholder in Hindustan Zinc with a 29.54% stake, while Vedanta owns 64.9%.
The government had opposed Hindustan Zinc's deal to buy two Vedanta Group entities, saying it was a "related party transaction" and underscored its opposition to the deal being funded through cash reserves.
Hindustan Zinc's shares prices have tumbled since the deal was announced, which has jeopardized the government's plan to sell part of its stake. It has since put that plan on hold.
The lapsing of the deal is a blow for Vedanta Resources, as the billionaire Anil Agarwal-owned mining giant had planned to pare down some of its $7.7-billion in net debt via the sale.
Comments
Projects
Latest Multimedia
Latest News
Showroom
SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
