The Anil Agarwal-led Vedanta Ltd will sell Zinc International’s assets to Hindustan Zinc, a Vedanta subsidiary, for a money consideration of $2,981 million.
According to inventory market notification, the sale of Zinc International assets held by THL Zinc Ventures Ltd (Mauritius) – one other wholly owned subsidiary of Vedanta, by way of THL Zinc Ltd (Mauritius) – was authorized by the board on Thursday.
Post the sale, THL Zinc Ltd will develop into a wholly-owned subsidiary of Hindustan Zinc.
The money consideration shall be accomplished in a phase-wise method, topic to agreed milestones. The transaction is predicted to be accomplished over the following 18 months, submit acquiring regulatory clearances.
Zinc assets of THL Zinc comprise of Black Mountain Mining (Pty) Ltd, situated at Aggeneys, a mining city in South Africa. It mines zinc, lead, silver and copper. It additionally contains Skorpion Zinc (Pty) Ltd and Skorpion Mining Company (Pty) Ltd, Namibia. Skorpion Zinc operates a refinery for zinc manufacturing.
“The zinc assets have 35 mt reserve & useful resource (metallic) within the floor with 30 years lifetime of mine. This funding is a beautiful alternative for Hindustan Zinc to develop and improve its foothold abroad and take its model globally. With the zinc assets, Hindustan Zinc may have the mixed reserves & sources of 1000 plus million tonne of ore and 65 plus mt of metallic throughout India and Africa,” Hindustan Zinc stated in a regulatory submitting.
It stands to profit from new applied sciences and know-how and enhance restoration. “The funding in zinc assets is predicted to earn considerably larger returns in contrast to the present treasury returns,” the corporate stated including that this “transaction will enhance general synergies between the companies, market share good points in addition to geographical diversification to a mineral-rich African continent”.
Leadership change
Hindustan Zinc additionally knowledgeable the bourses that its Chairperson and Director, Kiran Agarwal, has stepped down, with impact from January 18; and the nomination and remuneration committee has authorized the appointment of Priya Agarwal to the place of Chairman, with speedy impact.
Kiran Agarwal is the spouse of Vedanta founder Anil Agarwal, whereas Priya is the daughter.
“Kiran Agarwal, Chairperson and director of the Company had stepped down from the board w.e.f. January 18, 2023 to pursue Vedanta Group Chairman’s imaginative and prescient to give again 75 per cent of his wealth to the society by way of his private basis,” Hindustan Zinc stated in a regulatory submitting.
The appointment of Priya Agarwal as a further director and Chairperson of the corporate was authorized on the Board assembly held on Thursday.
Results
Hindustan Zinc reported a 20 per cent drop in internet revenue at ₹2,156 crore for the quarter ended December 31, 2022. Consolidated internet revenue within the year-ago-period was ₹2,701 crore.
Consolidated income declined by 2.7 per cent to ₹7,628 crore within the quarter below assessment. It stood at ₹7,841 crore a 12 months in the past.
The HZL board additionally really helpful an interim dividend of ₹13 per fairness share. The complete payout shall be ₹5,493 crore.