Sesa Goa and Sterlite merger announced

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Sesa Goa and Sterlite merger announced
Sterlite Industries (India) and its subsidiaries will merge with Sesa Goa and its subsidiaries and Vedanta Resources and its subsidiaries, the Vedanta group announced on Saturday.

The transaction highlights involve merger of Sterlite into Sesa Goa with a proposed new name Sesa Sterlite. Three shares of Sesa Goa shares will be issued for every five existing shares of Sterlite

Vedanta Aluminium and The Madras Aluminium Company will be 100% consolidated into Sesa Sterlite. A transfer will take place of Vedanta’s direct holding of 38.8% in Cairn India to Sesa Goa, together with the associated debt of $5.9 billion, at cost. Post the transfer, Sesa Sterlite will have a 58.9% shareholding in Cairn India.

Anil Agarwal, Chairman of Vedanta, said, “Sesa Sterlite will be one of the largest global diversified natural resources majors, supporting country’s industrial growth. This transaction is a natural evolution, leading to simplification of the Group’s structure. Sesa Sterlite will be the principal operating company in the group and with its high quality assets, growth projects and strong management, it is well placed to create value for all shareholders.”

Read more about: sesa goa, sterlite, cairn
Story first published: Saturday, February 25, 2012, 14:04 [IST]
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