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HomeEconomyVedanta says no restructuring, won’t spin off businesses, as current structure optimal

Vedanta says no restructuring, won’t spin off businesses, as current structure optimal

Company also said it aims to distribute minimum of 30% of attributable profits after tax, before exceptional items & excluding profits of Hindustan Zinc Ltd., as dividends within 6 months.

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Billionaire Anil Agarwal’s Vedanta Ltd. said it won’t undertake any restructuring including spinning off businesses as its current structure is optimal, according to a stock exchange filing on Tuesday.

Additionally, the company said it aims to distribute a minimum 30% of its attributable profit after tax, before exceptional items and excluding profits of its unit Hindustan Zinc Ltd., as dividend. The dividend from Hindustan Zinc will be passed through to investors within six months.

Vedanta will selectively invest in acquisitions that will add to existing businesses or have synergies with its core businesses, it said. To fund a potential acquisition of Bharat Petroleum Corp., a specific fund with a strategic investor will be set up without leveraging Vedanta’s balance sheet, according to the filing.

Vedanta in November said it intended to streamline its structure and was looking at options including separately listing its aluminum, iron and steel, and oil and gas units. Separately, Bloomberg News reported last week that Agarwal was considering a potential merger of his commodity empire’s indebted holding company Vedanta Resources Ltd. with cash-rich Vedanta Ltd. – Bloomberg.

Also read: Indian billionaire Anil Agarwal considering Vedanta Resources merger with cash-rich India unit


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