Vedanta ups offer price for HZL, Balco stake

 Vedanta Group may shell out Rs 21,635 crore, up to 25 per cent more than previously offered, for buying the government’s remaining stakes in Hindustan Zinc and Balco as its earlier offers have not been accepted so far.

Vedanta has called shareholders meeting on August 28 in London, alongside its annual general meeting, to seek nod for the sweetening its offers in the two firms, but a company spokesperson said that it is just an “enabling provision” and no new offer has been made yet to the government.

If it goes through, this deal alone could meet over 72 per cent of the government’s disinvestment target of Rs 30,000 crore for this year. “We have not made any fresh proposal to the government. Whatever proposal we gave in January, that is the only proposal pending,” Vedanta spokesperson said. After shareholders approval, the board would have the powers to raise the offer price up to Rs 18,606.10 crore for HZL, and up to Rs 3,028.78 crore for Balco. “As the Government of India has not, to date, accepted the company’s offers, approval from shareholders is being sought on the basis that the company is authorised to negotiate the acquisition of the entirety of the GoI’s interest in HZL for an aggregate consideration not more than 15 per cent higher than the price offered and in Balco for an aggregate consideration not exceeding $550 million,” it said.

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