Vedanta demerger receives approval from shareholders, creditors

Vedanta Limited approved demerger into five sector-specific companies, creating global scale businesses with focused operations and market potential.

“Vedanta Limited has received approval from its shareholders and creditors for its proposal to demerge the company into five independent, sector-specific companies,” according to a stock exchange filing by the company.

The demerger was approved by 99.99% of shareholders, 99.59% of the secured creditors, and 99.95% of unsecured creditors of Vedanta Limited who voted in favour of the demerger, as per the stock exchange filing made by the company.

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According to Vedanta’s demerger scheme, every Vedanta shareholder will receive one additional share in each of the four newly demerged companies on the completion of the demerger process.

The five companies are Vedanta Aluminium, one of the world’s largest producers of aluminium; Vedanta Oil & Gas, India’s largest private-sector crude oil producer; Vedanta Power, one of India’s largest generators of power; Vedanta Iron and Steel — a company with a highly scalable ferrous portfolio; and Vedanta Limited – which will include the world’s second largest integrated zinc producer & third largest silver producer – in Hindustan Zinc.

Vedanta Limited will also act as an incubator for new businesses, including Vedanta’s technology verticals.

As per Vedanta’s demerger scheme, the demerger will create five independent companies of a global scale focussed on the mining, production and/or supply of aluminium, iron-ore, copper, oil & gas, and on generation and distribution of power.