Govt reiterates dissent to Hindustan Zinc’s buyout of Vedanta’s global zinc assets, to explore legal options
Biznextindia : The government of India has once again opposed Hindustan Zinc’s proposed acquisition of Vedanta’s global Zinc assets. The government has stated that it will explore legal options regarding the deal and has asked Hindustan Zinc to consider alternative cashless methods for the acquisition of these assets.
Directors nominated for appointment by the government, namely Farida Naik, Veena Kumari Dermal, and Nirupama Kotru, have recorded their dissent regarding the transaction.
Despite the government’s repeated objections, Hindustan Zinc proceeded with the exchange filing for the $2.98 billion buyout, which would transfer Vedanta’s international zinc assets to the company. Vedanta currently holds a 64.92% stake in Hindustan Zinc.
The announcement of the buyout was made by Vedanta during its quarterly earnings last month.
In the current financial year, the government intends to divest its 29.5% stake in Hindustan Zinc, but the objection raised by government-appointed directors regarding the sale of Vedanta’s international zinc assets to Hindustan Zinc may jeopardize these plans.