Sesa Goa plans stock split, bonus issue
26 April 2008
Mumbai: Iron ore exporter Sesa Goa Ltd is going for a stock split and a bonus issue of shares. The board of directors of the company which met to consider final dividend, book closure date and the date of annual general meeting, also recommended a stock split and a bonus Issue.
The board of directors, at their meeting held on 22 January 2008, had declared an interim dividend for the year 2007-08 at Rs15 per share.
London-listed miner Vedanta Resources owns a controlling stake in Sesa Goa. Vedanta Resources Plc bought the stake from Mitsui & Co for $981 million, beating rivals, including Arcelor Mittal, to secure supplies of the steel-making raw material.
Vedanta, the biggest producer of copper and zinc in India, paid Rs2,036 ($49) per share for a 51 per cent stake. Vedanta will offer to buy a further 20 per cent for at least the same price. Adviser Nomura Holdings Inc. will lend $1.1 billion to fund the takeover.
Chairman Anil Agarwal beat two fellow Indian billionaires, Lakshmi Mittal and Kumar Mangalam Birla, to secure supplies of iron ore China needs to fuel its economic boom.
Competition for Sesa Goa drove its shares to a record Rs2,000 on 29 January, valuing the miner at $1.8 billion. India has the world's fifth-biggest iron-ore reserves.
Vedanta said 71 per cent of Sesa Goa will cost $1.37 billion, which it will fund using the loan from Nomura and its own cash.