Vedanta Group announces restructuring plan, Interview with Anil Agarwal

Vedanta Group announces restructuring plan

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.

Other related articles:
Sterlite to demerge aluminium, energy operations
Vedanta Resources restructures into 3 units
Vedanta to up iron ore capacity, eyes mining buys
Sesa Goa to up iron ore capacity, eyes mining buys
Vedanta restructures group into 3 commodity focused verticals

Madras Aluminium may be merged with Sterlite
Market weak; Sterlite falls on restructuring plans
Sterlite down 5% on swap ratio, sluggish zinc demand
Vedanta to boost Sesa Goa iron ore capacity, restructure group
Vedanta restructures holding companies
Sensex ends down 44pts; Sterlite drops 8%

Vedanta rolls out restructuring plans
Vedanta to up iron ore capacity, eyes mining buys
Vedanta Resources to restructure, to invest in aluminum
Sterlite: Dull metal
Vedanta to up iron ore capacity, eyes mining buys - Sify.com
Sterlite revamp: 7 Malco shares for 4 shares - Sify.com
---------------------------------------------------
Interview with Anil Agarwal, Tarun Jain, Vedanta
Vedanta to demerge Sterlite's alumina, energy biz

Vedanta Resources will create three commodity focus groups. The company will demerge alumina, energy business of Sterlite Industries. The company has announced USD 9.8 billion aluminium capex programme and aims to raise aluminium smelting capacity by 2.6 million tonnes per annum by 2012.
Vedanta will also transfer 79.4% stake in Konkola Copper Mines to Sterlite, he added. Sterlite shareholders will get seven shares of Malco for four shares held in Sterlite. On the other hand, Malco shareholders will get one Sterlite share for every 51 held. The scheme will be effective from April 1 2009, he said.
Anil Agarwal, Chairman said that Asarco buy will be closed by year-end. He said, "We are looking to invest Rs 115,000 crore for which we have already invested Rs 40,000 crore. We have Rs 30,000 crore in cash and we are going to invest Rs 75,000 crore further in three years’ time. We will have 1 million tonne of copper, 1 million tonne of zinc and 26 lakh tonne of aluminium. We have also kept a provision to acquire Asarco for USD 2.6 billion.”
Tarun Jain, CFO, Vedanta Resources has said that some part of Bharat Aluminium Company Limited (BALCO) option has been considered by valuers and there are no plans for raising equity in Sterlite Aluminium

More @http://www.moneycontrol.com/india/news/business/restructuring-to-unlock-value-for-all-shareholders-vedanta/22/50/355431


Source:ET, BS, BL, Sify, MC and etc