- Vedanta Ltd on Thursday called all sales talks in the oil-to-metal conglomerate “false and baseless”.
- According to a news report, mining tycoon Anil Agarwal is considering a share sale in Vedanta as a last resort.
- Vedanta Resources has sought to reduce its debt through the sale of its zinc assets.
New Delhi, Vedanta Ltd on Thursday called all sales talks in the oil-to-metal conglomerate “false and baseless”. This comes in the wake of a news report saying mining tycoon Anil Agarwal is considering a stock sale in Vedanta as a last resort and exploring the possibility of selling less than 5 percent of the company.
According to the company’s spokesperson, “Any talk of selling shares in Vedanta Ltd is untrue and baseless.”
The media report said the sale of shares in Vedanta is a last resort for Agarwal and will only be considered if other fundraising options fail.
Vedanta Resources, a majority shareholder of Vedanta Ltd, has sought to reduce its debt by selling its zinc assets for a cash consideration of USD 2,981 million to Hindustan Zinc Ltd (HZL). However, the government, which has a 29.54 percent stake in Hindustan Zinc, has strongly opposed the move.
Vedanta owns 64.92 percent of the share capital of HZL.
Vedanta Resources had previously said it has sufficient funds to meet debt service obligations in the coming quarters as it seeks to allay investor concerns about its financial position.
In a statement, the company, which is the majority shareholder of Mumbai-listed mining and oil and gas company Vedanta Ltd, had said it is in an advanced stage of completion to commit $1.75 billion through a combination of a syndicated loan and bilateral bank loans. facilities.
Vedanta Resources had said it had prepaid all of its debt due until March 2023, reducing $2 billion in the past 11 months.
Furthermore, it is confident that it will meet its liquidity requirements for the quarter ending June 2023.
Vedanta Resources had recently said it had fully repaid $250 million in loans it took out from Barclays Bank and Standard Chartered Bank.