Sweetening its long-pending offer, mining conglomerate Vedanta Resources has said it would hike the total offer price for acquiring more stakes in Hindustan Zinc and Balco to nearly $4 billion (more than Rs 24,800 crore), 43 per cent higher than its last year’s proposal.
The London-listed group, headed by Anil Agarwal, has been in talks with the government for more than two years to acquire the remaining stakes in Bharat Aluminium Company (Balco) and Hindustan Zinc. Currently, Vedanta Resources has 64.9 per cent stake in Hindustan Zinc and 51 per cent in Balco.
The government currently holds 29.5 per cent stake in Hindustan Zinc and 49 per cent in Balco. Vedanta, now, plans to acquire additional 29.5 per cent in Hindustan Zinc for $3.482 billion (over Rs 21,600 crore) and 49 per cent stake in Balco for $487 million (more than Rs 3,000 crore), according to Agarwal’s letter to shareholders.
The entity would seek shareholders’ approval for the revised proposal during their meeting on October 30 in London. In January 2012, Vedanta had offered to acquire government’s stake in Hindustan Zinc and Balco $2.938 billion and $338 million, respectively.
According to Vedanta, the current offer price is assumed on the spot exchange for Indian rupee of 62.1383 against the US dollar. The rate is as on October 13.