Vedanta Set to Offload Shares, Hind Zinc OFS in Limbo
Massive Restructuring Plans Underway
Vedanta Limited, a major player in mining and natural resources, has announced a significant move to offload a 26% shareholding in Hindustan Zinc through an Offer For Sale (OFS).
This move has sent shockwaves through the industry and raised questions about the future of Hindustan Zinc, a subsidiary of Vedanta. The announcement also casts doubt on a potential OFS for Hindustan Zinc itself, which was reportedly under consideration.
The decision by Vedanta to sell its zinc assets to its subsidiary Hindustan Zinc highlights a larger restructuring plan within the company. As of December 2022, Vedanta held a 64.92% stake in Hindustan Zinc. The sale of these assets will further strengthen Hindustan Zinc's position as a global zinc producer.
The Vedanta board has approved the sale of Zinc International assets held by THL Zinc Ventures Ltd Mauritius (THLZV). The board of Hindustan Zinc (HZL), in which the government is the largest minority shareholder with a 29.54% stake, will also need to approve the transaction.
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