Sesa Goa, Sterlite shareholders approve merger

Shareholders of Sesa Goa and Sterlite Industries today approved the proposed merger of both the companies, clearing the first hurdle in becoming the world's seventh largest integrated resource giant, with a market cap of Rs1,00,000 crore.

In a filing with the Bombay Stock Exchange, Sesa Goa said that 91.70 per cent of voters - representing 79.12 per cent of votes approved the merger in shareholders meeting held on 19 June in Goa.

In a separate filing, Sterlite said that a majority of 92 per cent voted in favour of the merger at a meeting held on 21 June in Tuticorin.

The merger is now subject to the approval of the Bombay and Madras High Courts, said both companies in their respective filings.

The proposal covers Sesa Goa, Sterlite Industries, Madras Aluminium Co Ltd, Sterlite Energy Ltd and Vedanta Aluminium Ltd.

In February, Sesa Goa and Sterlite, controlled by London-based billionaire Anil Agarwal, proposed the merger in order to reduce debt of parent Vedanta Resources Plc, which had paid $8.67 billion to buy Cairn India Ltd in December 2011.