The government of India, which holds a 29.54 per cent stake in Hindustan Zinc, has reiterated its dissent towards Vedanta's sale of its zinc international assets held by THL Zinc Ventures to a subsidiary of Hindustan Zinc Limited, the company said in an exchange filing. The center also said that it will oppose any proposed resolution and look into all legal options available in this regard.
Vedanta Limited announced on January 19 that its board has given approval to the sale for a cash consideration of $2,981 million.
The company in its exchange filing said, "We have been informed by the directors nominated for appointment by the Government of India that in the meeting of the board of directors of the company held on 19 January 2023, resolutions were approved for the creation of a wholly owned overseas subsidiary of the Company, funding such subsidiary to the extent of USD 2,981 million, and such acquiring the shares of THL Zinc Limited from THL Zinc Ventures Limited (an entity of the Vedanta group)."
The government has opposed the deal, stating that it goes against the interests of minority shareholders and is also in violation of corporate governance norms. The government has also urged the company to explore cashless methods of acquisition for these assets.
The directors Farida M. Naik, Veena Kumari Dermal, and Nirupama Kotru, who are appointed by the government of India, recorded their dissent to the said proposal.
Shares
The shares of Hindustan Zinc Limited on Monday at 10:27 were at Rs 323.35, down by 0.19 per cent.
