Vedanta Limited ("Demerged Company" or "VEDL") is a diversified natural resources company engaged in the business of extraction, refining, manufacturing and sale of various metals and minerals, generation and sale of power and other businesses. The equity shares of VEDL are listed on nationwide bourses. The listed debt securities of VEDL are listed on BSE Limited. VEDL is a subsidiary of Vedanta Resources Limited listed on the Luxemburg exchange.
Vedanta Aluminum Metal Limited ("Resulting Company 1" or VAML"), Talwandi Sabo Power Limited ("Resulting Company 2" or TSPL"), MALCO Energy Limited ("Resulting Company 3" or MEL"), Vedanta Base Metals Limited ("Resulting Company 4" or VBML") and Vedanta Iron and Steel Limited ("Resulting Company 5" or VISL") are wholly owned subsidiaries of VEDL.
Transaction:
The Board of Directors of VEDL have approved a Composite Scheme of Arrangement which inter-alia provides for:
Demerger of Aluminum Undertaking of VEDL to Vedanta Aluminum Metal Limited
- Demerger of merchant Power Undertaking of VEDL to Talwandi Sabo Power Limited
- Demerger of Oil & GAS Undertaking of VEDL to MALCO Energy Limited
- Demerger of Base Metal Undertaking of VEDL to Vedanta Base Metals Limited
- Demerger of Iron ore Undertaking of VEDL to Vedanta Iron and Steel Limited VEDL will continue to hold strategic investment in Hindustan Zinc Limited,
- Vedanta stainless business, its proposed semiconductor business and display glass manufacturing.
- Effectively, the existing VEDL will be split into 6 different companies (including existing VEDL] which will house different businesses.
Rationale for the demerger:
This story is from the November 2023 edition of M & A Critique.
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This story is from the November 2023 edition of M & A Critique.
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