Bhubaneswar : Vedanta Ltd on Thursday said its shareholders and lenders have approved the splitting of the metals to oil conglomerate into five independent, sector-focused entities.
In a stock exchange filing, Vedanta said 99.99 per cent of shareholders who voted for the demerger scheme, supported the move
Parallelly, 99.59 per cent of the secured creditors, and 99.95 per cent of unsecured creditors of Vedanta Ltd voted in favour of the demerger.
The five entities being created from the split would include Vedanta Ltd, which would house the company’ s base metals. According to Vedanta’s demerger scheme, every Vedanta shareholder will receive 1 additional share in each of the 4 newly demerged companies on the completion of the demerger process.
The other companies that will be created out of the demerger are Vedanta Aluminium, one of the world’s largest producers of aluminium; Vedanta Oil & Gas, India’s largest private-sector crude oil producer; Vedanta Power, one of India’s largest generators of power; Vedanta Iron and Steel – a company with a highly scalable ferrous portfolio; and Vedanta Limited – which will include the world’s second largest integrated zinc producer and third largest silver producer – in Hindustan Zinc.
Vedanta Ltd will also act as an incubator for new businesses, including Vedanta’s technology verticals
As per Vedanta’s demerger scheme, the demerger will create five independent companies of a global scale focussed on the mining, production and/or supply of aluminium, iron-ore, copper, oil & gas, and on generation and distribution of power.
It will enable greater focus of the Vedanta management on the relevant businesses thereby allowing further streamlining of operations and more efficient usage of assets and leveraging of opportunities.