Vendanta seeks shareholders' nod to up offer price for Hindustan Zinc, Balco
22 August 2012
Vedanta Group may pay Rs21,635 crore, about 25 per cent more than planned earlier, for buying the government's remaining stakes in Hindustan Zinc and Balco, after its previous offers elicited no response from the government.
Vedanta has called shareholders' meet on 28 August in London, alongside its annual general meeting, to seek approval for sweetening its offers for acquisition of the remaining government stakes in the two firms.
According to analysts, if the deal were to go through, it would meet over 72 per cent of the government's disinvestment target of Rs30,000 crore for this year.
Vedanta took a 51 per cent stake in Balco in 2001 and followed it up with a 64.9 per cent stake in Hindustan Zinc Ltd (HZL) in 2002-2003.
This January, Vedanta had offered Rs15,493 crore for acquisition of a 29.5 per cent in HZL, and Rs1,782 crore for 49 per cent residual holding in Balco.
Following approval from shareholders, the company board would have the powers to raise the offer price up to Rs18,606.10 crore for HZL, and up to Rs3,028.78 crore for Balco.