Sterlite merger, Vedanta Aluminium business demerger effective
As part of amalgamation, Vedanta Group firm Sesa Goa today said its merger of Sterlite Energy and demerger of aluminium business of Vedanta Aluminium into it have become effective.
In a BSE filing, the company also said that its wholly-owned subsidary Bloom Fountain Limited would acquire 38.68 per cent stake in Cairn India together with associated debt, effective from August 26.
"Further, the company has also approved the acquisition of 1,215 MW thermal power plants situated at Jharsuguda and 90 MW co-generation facility at Lanjigarh from its wholly-owned subsidiary VAL, on a going concern basis," it said.
"The above transaction would complete Vedanta Group's consolidation and simplification as announced on February 25, 2012," Sesa GoaBSE -1.43 % said.
Vedanta had announced the merger in February to create a mega Indian natural resources giant, Sesa Sterlite, on the likes of BHP Billiton and Rio Tinto. It would also result in a Rs 1,000 crore annual saving for Vedanta through a reduction in debt-servicing cost as most of its debt gets transferred to the new entity.
The merger between the two group firms, together with several other group firms, became effective on August 17.
Cairn India, Hindustan Zinc, Balco, Vedanta Aluminium, Madras Aluminium, Western Clusters in Liberia, Talwandi Sabo Power and Australian Copper Mines have now become subsidiaries of Sesa Sterlite after the restructuring.