+
Govt plans to resist Hindustan Zinc's proposal to buy Vedanta assets
COAL & MINING

Govt plans to resist Hindustan Zinc's proposal to buy Vedanta assets

The government intends to reject Hindustan Zinc's offer to pay $2.98 billion for the global zinc assets of Vedanta.

The government which plans to sell its nearly 30% stake in Hindustan Zinc through an offer-for-sale mechanism, is likely to vote against the plan due to worries about everything from high valuations to the fact that it involves a related party.

They added that the government is attempting to persuade Hindustan Zinc to withdraw the proposal and claimed that the idea was forced through despite government officials' refusal to approve it.

Last month, Hindustan Zinc and its parent company decided to buy THL Zinc Mauritius' assets in 18 months in a phased acquisition. THL's businesses include Skorpion Zinc (Pty) in Namibia and Black Mountain Mining (Pty) in South Africa.

Analysts have warned that the expensive deal will deplete Hindustan Zinc's cash reserves, which Vedanta owns approximately 65% of. Regular dividend payments from the unit to the parent have assisted in increasing cash flow for Vedanta Resources.

Also read:
BKT launches EARTHMAX Crusher Haul & EARTHMAX SR 34
Schwing Stetter unveils silver jubilee logo and tagline


The government intends to reject Hindustan Zinc's offer to pay $2.98 billion for the global zinc assets of Vedanta. The government which plans to sell its nearly 30% stake in Hindustan Zinc through an offer-for-sale mechanism, is likely to vote against the plan due to worries about everything from high valuations to the fact that it involves a related party. They added that the government is attempting to persuade Hindustan Zinc to withdraw the proposal and claimed that the idea was forced through despite government officials' refusal to approve it. Last month, Hindustan Zinc and its parent company decided to buy THL Zinc Mauritius' assets in 18 months in a phased acquisition. THL's businesses include Skorpion Zinc (Pty) in Namibia and Black Mountain Mining (Pty) in South Africa. Analysts have warned that the expensive deal will deplete Hindustan Zinc's cash reserves, which Vedanta owns approximately 65% of. Regular dividend payments from the unit to the parent have assisted in increasing cash flow for Vedanta Resources. Also read: BKT launches EARTHMAX Crusher Haul & EARTHMAX SR 34 Schwing Stetter unveils silver jubilee logo and tagline

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Infrastructure Opportunity Outlook by IMPACCT.Info

India’s infrastructure pipeline is witnessing dynamic activity across stages — from immediate bidding to future planning. IMPACCT segments these into three categories: Immediate, 3–6 Month, and Future Opportunities, enabling businesses to identify, prepare, and participate in high-value tenders and projects across sectors.To read full article Click Here ..

Next Story
Real Estate

Glass, Reframed!

Glass façades, quintessential aesthetic building envelopes globally, have been widely adopted in India as well. But when the focus is high-performance building systems that deliver energy efficiency, comfort and architectural identity, glass isn’t the only preference. Combination solutions, involving glass and some other material, improve façade outcomes. Some combinations come at comparable prices, some at a higher price. Here is a selection of performance-oriented solutions...To read the full story Click Here ..

Next Story
Infrastructure Urban

Beyond Building Faster

India’s cities are expanding at an unprecedented pace, bringing new infrastructure and development opportunities while also intensifying challenges around mobility, public spaces, liveability and supporting infrastructure. The question, therefore, is not simply whether India can build faster, but whether it can build cities that work better.At a CW webinar, Are We Designing Better Cities – or Just Building Faster?, moderator Ar. Samir Shaikh, Founding Principal, AR&UD Studio, brought together perspectives from design, development, master planning and technology...To read the full artic..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code