Vedanta Ltd.’s creditors will convene on February 18, 2025, to give their final verdict on the proposed demerger, which aims to split the Indian mining conglomerate into five distinct businesses, according to Bloomberg. This court-ordered meeting is a key step in the company’s efforts to simplify its structure and manage its debt burden. If approved by lenders, the plan will then be presented to shareholders for their approval.
Vedanta recently revised its demerger plan, deciding to retain its base metals business within the parent company. The demerger process, according to Bloomberg, is expected to be completed by January 2025, with shareholders receiving one share each in the newly formed entities for every share they hold in Vedanta.
Earlier, Vedanta Limited announced updates to its previously proposed demerger plan, deciding to retain its base metals business within the parent company. As a result, the conglomerate may split into five separate listed companies instead of the six initially planned. The process is expected to be completed by January 2025, with shareholders receiving one share each in the newly formed entities for every share they hold in Vedanta.
Revised Vedanta demerger structure (Potential)
- Vedanta Limited: The parent company will house Hindustan Zinc, Zinc International, the copper business in Thoothukudi, and the Facor business.
- Vedanta Aluminum Metal: This entity will manage the aluminum business, including smelters, refineries, bauxite mines, and captive power plants.
- Vedanta Oil and Gas: Malco Energy, renamed as Vedanta Oil & Gas, will include the Cairn Oil & Gas business.
- Vedanta Iron and Steel: This entity will hold Vedanta’s iron ore mines and the ESL steel plant.
- Vedanta Power: Talwandi Sabo Power will be renamed Vedanta Power, covering all merchant power plants.
Disclaimer: The information provided is for informational purposes only and should not be considered as financial or investment advice.
