scorecardresearchVedanta to sell Zinc International assets to Hindustan Zinc for $2.9 billion

Vedanta to sell Zinc International assets to Hindustan Zinc for $2.9 billion

Updated: 20 Jan 2023, 08:08 AM IST
TL;DR.
Vedanta has agreed to sell its Zinc International assets held by THLZV to Hindustan Zinc Ltd for a cash consideration of USD 2,981 million. The transaction is subject to regulatory approvals and is expected to be completed in 18 months. This will unlock value and create substantial synergies for both THLZ and HZL.
Vedanta’s aluminium smelter at Jharsuguda is among the largest in the world, with a capacity of 1.75 million tonne per annum. (Photo: Reuters)

Vedanta’s aluminium smelter at Jharsuguda is among the largest in the world, with a capacity of 1.75 million tonne per annum. (Photo: Reuters)

(PTI) Anil Agarwal-promoted Vedanta on Thursday said it will sell Zinc International assets to Hindustan Zinc for a cash consideration of USD 2,981 million.

The Vedanta's board approved the sale of  Zinc International assets held by THL Zinc Ventures Ltd (Mauritius) (THLZV), a direct wholly-owned subsidiary of the metals and mining major.

The assets held THLZV through THL Zinc Ltd (Mauritius) comprising shares held in Black Mountain Mining Pty Ltd, South Africa (69.6 per cent) and THL Zinc Namibia Holdings (Pty) Ltd (100 per cent), Namibia, will be sold to the proposed wholly-owned subsidiary (SPV) of Hindustan Zinc Ltd (HZL) for a cash consideration not exceeding USD 2,981 million, Vedanta said in a filing.

Vedanta holds 64.92 per cent of the equity share capital of HZL.

The proposed transaction will be subject to receipt of necessary regulatory nods.

Subject to receipt of timely regulatory approvals, the transaction is likely to be completed in a phased manner over a period of 18 months.      

"The proposed transaction will unlock value, monetise the said zinc assets and create substantial synergies for both THLZ and HZL.       

Hindustan Zinc is the country's integrated producer of zinc, lead and silver.

First Published: 20 Jan 2023, 08:08 AM IST