The Bombay High Court has cleared the way for oil and mining group Vedanta to streamline its sprawling structure, dismissing on Monday an appeal by a shareholder of unit Sesa Goa that could have stopped or delayed the move.
Vedanta shares rose on the news, increasing gains on the day to climb 2 percent to change hands at 1,268 pence, compared with a 1.3 per cent rise in the sector. Vedanta had said it planned to overhaul its web of subsidiaries, creating an umbrella unit that will group most of its assets. Under the consolidation plan, the company’s copper unit Sterlite Industries will be merged with iron ore unit Sesa Goa to create an operating subsidiary, Sesa Sterlite.
A Madras court approved that plan last month, but news of the Sesa Goa shareholder appeal had prompted some concern that timing could slip yet again. Sesa Goa said in a statement that the Division Bench of the High Court of Bombay dismissed the appeal and sanctioned the restructuring plan — a scheme Vedanta hopes will attract new investors and improve access to cash to help pay down its debt.