Sesa Goa and Sterlite Industries’ merger scheme, together with several other group firms, has become effective, after getting final approval from the Goa Bench of Bombay High Court. As per the approval, Malco’s power plant has been transferred to Vedanta Aluminium. It will be allotting the shares on August 28 to the respective shareholders as per the merger scheme.
With this initiative, both the firms aim to create mega Indian natural resources giant, Sesa Sterlite. It will also result in Rs 1,000 crore annual saving for Vedanta through a reduction in debt-servicing cost as most of its debt gets transferred to the new entity. As per the merger scheme, now Sesa Sterlite will be the holding company of all group firms of Vedanta other than Konkola Copper Mines (KCM) in Zambia. Vedanta will hold 58.3% in Sesa Sterlite and 79.4% stake in KCM.
