Vedanta Group announces restructuring plan

  • 09/09/2008

  • Hindu (New Delhi)

Mumbai (PTI): Aiming to increase its efficiency, NRI Anil Agarwal-led Vedanta Resources on Tuesday announced a plan for re-aligning its corporate structure into three commodity focussed verticals. The group structure would be simplified into three verticals -- copper and zinc-lead, aluminium and energy, and iron ore, Sterlite Industries informed the Bombay Stock Exchange. Under the restructuring scheme, Sterlite would demerge its aluminium and energy businesses to Madras Aluminium Company Ltd (MALCO) with effect from April 1, 2009. Pursuant to the scheme, for every four share held in Sterlite, the shareholders would get seven equity shares in Malco, Sterlite Industries (SIIL). Further, for the demerger of Malco's investment into Sterlite, SIIL would issue one share for every 51 equity shares held in Malco. Besides, the other aluminium business undertakings of the Vedanta Group would also be demerged into Malco, which include the aluminium foils plant at Sanaswadi, 51 per cent stake in Balco and 29.5 per cent stake in Vedanta Aluminium. Meanwhile, a 100 per cent stake in Sterlite Energy Ltd (SEL) would also be demerged into Malco, the filing added. After the demerger, Malco would be renamed as Sterlite Aluminium Ltd. Under the scheme, Vedanta would transfer 79.4 per cent equity interest in Konkola Copper Mines Plc (KCM) to Sterlite.