Sesa Goa Ltd. (SESA) and Sterlite Industries (India) Ltd. (STLT) shareholders approved a plan to combine the units of Vedanta Resources Plc (VED) into a new company.
The proposal won the required majority at the voting held on June 19 and June 21, Sesa Goa and Sterlite said today in separate statements. Sesa is India’s largest iron ore exporter, while Sterlite is the nation’s largest copper producer.
Billionaire Anil Agarwal’s Vedanta Resources said on Feb. 25 it will combine the listed units to reduce its debt following its $8.67 billion purchase of oil producer Cairn India Ltd. (CAIR) Investors will get three Sesa shares for five of Sterlite and Vedanta will transfer for $1 to the new company its holding in Cairn India, including a $5.9 billion debt.
Shares of Panaji, Goa-based Sesa rose 0.3 percent to 187.35 rupees at the close in Mumbai. Sterlite gained 0.5 percent to 99.15 rupees. The benchmark Sensitive Index fell 0.5 percent.
Vedanta plans to complete the merger by end of this year, it said today in a statement.
Vedanta, with no previous experience in oil and gas projects, is trying to boost its finances and ratings after buying Cairn India and gaining access to the nation’s biggest onshore oilfield. Unprofitable Vedanta Aluminium Ltd., owned 70.5 percent by Vedanta, will be consolidated into the new company, according to the Feb. 25 statement.
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