Sale of stake to Vedanta opposed


SPECIAL CORRESPONDENT\

,The Hindu

Seeking Prime Minister Manmohan Singh’s intervention, Union Minister of State for Commerce & Industry D. Purandeswari on Tuesday said the government should not allow sale of residual stake in Hindustan Zinc Limited (HZL) to Vedanta Group.

Stating that during NDA regime, under the garb of disinvestment, 71 per cent of stake was divested to Vedanta Group. Now the group was trying to buy the remaining stake and indulge in real estate business by jeopardising the interest of employees and contact workers engaged at Zinc Smelter in the city.

In a letter to the Prime Minister, she referred to the statement made by Vedanta Group chairman Anil Agarwal on plans to purchase residual stake in HZL and pleaded that at any cost the interest of people depending on Zinc Smelter for direct and indirect employment should be protected. She also regretted denial of salaries to the employees for past two months.

 

Indian Govt’s sell off plan may hit Vedanta


 , TNN | Feb 4, 2013, 05.06AM IST
NEW DELHI: In what may come as a setback for Vedanta Group, the government is considering offloading its stake in Balco and Hindustan Zinc (HZL) in the stock market instead of selling the shares to metals tycoon Anil Agarwal. The discussion comes at a time when the Centre is keen to sell shares in companies such as HZL and Balco, where the government disinvested its stake during the NDA regime, and monetize value from other assets in a bid to raise resources to bridge the widening fiscal gap.

Sources privy to the discussions said that talks have been held at the highest level in the government and one view was that sale of shares in the market will not only help the government realize better value but also avoid controversy, especially related to pricing.

In 2001, the government had sold a 51% stake in Balco to Sterlite Industries, leaving it with 49% holding. It holds a tad less than 30% in Hindustan Zinc, while Sterlite has close to 65% stake.

The share sale has been held up for several years as UPA-1 cited provisions of the Companies Act to deny the share sale.

In both cases, the shareholders’ agreement provided for the acquirer to exercise a call option or gave Agarwal’s outfits the right to buy the shares after a specified period. But UPA-1 decided against selling shares in every company where call options were provided for but has now woken up to selling residual stake as it faces an acute cash crunch.

Coupled with its inability to cut down on wasteful expenditure, it has already missed the fiscal deficit target of 5.1% of GDP and stares at the prospect of a sovereign ratings downgrade, which will put Indian securities in junk grade and hamper investment into the country.

As a result, it is pursuing an aggressive disinvestment programme with a target to mop up Rs 30,000 crore by selling stakes in several public sector companies such as NMDCOil India andNTPC through the public offer and auction route.

Sources said an offer for sale or auction of HZL shares was one of the options that was being pursued.

 

Moody Investors outlook for #Vedanta negative #Fakinghappiness


Wednesday, 12 Dec 2012

Moody’s Investors Service has affirmed Vedanta Resources Plc’s corporate family rating at Ba1 and its senior unsecured rating at Ba3.

The outlook for both ratings remains negative. Vedanta’s rating reflects its earnings generation underpinned by its acquisition of Cairn India in December 2011, but its operating cash flow is restrained by softer commodity prices in the current year. While capital investment can be deferred to compensate for weaker cash flow, the purchase of the Government’s stake in Hindustan Zinc at some stage and the Group’s refinancing requirements over the next 9 months, leave undue pressure on its liquidity and rating.

However, Vedanta still showed USD 484 million of free cash flow post expansionary capex in H1 FY13.

Mr Alan Greene VP senior Credit Officer of Moody’s said that “Vedanta’s EBITDA for the financial year ended March 2013 will include a full 12 months of Cairn India instead of the less than four months of contribution made in FY12. However, given the output challenges in the iron ore business and only modest output ramp-ups elsewhere, EBITDA in H2 FY13 is not expected to advance on that achieved in H1 FY13.”

Mr Greene said that “The bedrock of the business is clearly Vedanta’s 58.5% stake in Cairn India, and following its recent restructuring, it is now able to convert its cash flow into dividends.”

Source – Business Line

(www.steelguru.com)

 

Faking Happiness- #Vedanta will adopt 92 rural schools in south Rajasthan


TagsVedanta,Vedanta Rajasthan,Vedanta schools

 
Dec 3. 2012
Udaipur: Vedanta’s group company, Hindustan Zinc has signed an MoU with the Rajasthan Government to adopt 92 Schools in phases in Chittorgarh and Bhilwara District of the state.
The aim is to adopt 92 schools, 72 Government schools in Bhilwara for 5 years and 20 schools in Chittorgarh for 3 years, a company official said.The company would spend about Rs 3.35 Crore on this project.The project would provide basic infrastructure facilities like construction of class rooms, boundary walls of the school, installation of hand pumps, ceiling fans, coolers, construction of toilets, playgrounds, furniture for the children etc, said Pavan Kaushik,Head Corporate Communication.It will also provide scholarships to meritorious students.The company also plans to encourage plantation drive to develop green belt in schools.

To monitor the success of the project, a committee of 5 members has been formed which would have 2 members from Vedanta Hindustan Zinc, 2 from school and 1 member nominated by District Magistrate.

Based on the need of the school authority and assigned budget, the project will be executed by Vedanta Hindustan Zinc.

This would also ensure optimum utilisation of funds.

Earlier Vedanta Hindustan Zinc had provided 1000 computers to 200 government schools in rural areas and e-subject software support to about 500 schools.

The company is also providing daily mid-day meal to over 80,000 students in 2000 government schools in Rajasthan to ensure nutrition support to students.

Most of these children are from poor family and need regular nutrition support.

PTI

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