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Sterlite Industries gets shareholders approval for merger plan

26 Jun 2012 Evaluate

Sterlite Industries and Sesa Goa have received their members’ approval for the proposed merger. Both the companies will now be waiting for the approval of the High Court of Bombay at Goa and High Court of Madras.

The proposal envisaged the merger of Sterlite Industries with Sesa Goa (proposed new name ‘Sesa Sterlite’). As per the merger, shareholders of Sterlite Industries will get three shares of Sesa Goa for every five shares held.

Post merger, the Sesa Sterlite will become the seventh largest diversified resources company in the world with business interests in iron ore mining, copper, aluminium, zinc, lead, silver and oil and gas.

On June 21, shareholders of Sterlite Industries approved the merger proposal by an overwhelming majority of 92% of the votes in value at a meeting. On June 19, at a meeting of Sesa Goa’s shareholders, 91.70 of voters in number representing 79.12% of votes in value, voted in favor of the merger resolution.

Earlier, the Competition Commission of India had approved the merger plan proposed by the holding company Vedanta Resources.

Peers
Company Name CMP
Hindalco 1015.15
Vedanta 773.80
Hindustan Zinc 589.00
Jain Resource Recycl 419.80
Gravita India 1657.50
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