New Delhi: The mining company led by billionaire Anil Agarwal Vedanta Limited On Wednesday it said it was looking at a complete overhaul of its corporate structure, including listing the aluminium, iron and steel, and oil and gas businesses as separate entities and unlocking shareholder value. Is.
While the London-based parent company will remain the holding company of the diversified mining conglomerate, Vedanta Ltd. and the three businesses will operate in parallel as independent, listed companies, Chairman Agarwal told PTI here.
The company is evaluating all options, including demergers, spin-offs and strategic partnerships, and is considering listing its aluminum, iron and steel, and oil and gas verticals as separate entities.
“All three businesses have great growth potential and we think the model being evaluated will provide natural avenues for growth as well as increase shareholder value,” he said.
Giving an example, he said that once the scheme is approved and implemented, one shareholder of Vedanta will have 4x the shares – in Vedanta as well as in the three businesses.
“It is a global model and if you look at the Indian industry as well, you will find that (the metal flagship of the Aditya Birla group) Hindalco is a different company and so can Tata Steel. And so can we,” he said.
Agarwal said Vedanta’s board has constituted a committee of directors to evaluate and recommend options for restructuring the group.
“The idea is to do it as soon as possible. I can’t give a time frame, but it will be very soon,” he said.
The plan under evaluation is the same as what port-to-energy conglomerate Adani Group did in 2015 when the port, power and power transmission businesses were spun off from Adani Enterprises and listed separately.
Subsequently, a renewable energy firm and a gas utility were also created where Adani got Total France as a strategic partner.
The framework envisaged by Vedanta is in stark contrast to what it has been doing over the years.
The group previously merged Cairn India – the oil and gas company acquired from UK’s Cairn Energy Plc – into Vedanta Ltd. It then tried to liquidate Vedanta through share buybacks but the offer failed to achieve the required numbers.
Agarwal said the framework that is being evaluated is to build businesses that are better positioned to capitalize on their specific market position and deliver long-term growth and enable strategic partnerships.
“The Board of Directors of the Company has decided that, considering the scale, nature and potential opportunities of the Company’s various business verticals, the Company should undertake a comprehensive review of the corporate structure and evaluate a full range of alternatives and alternatives ( To unlock value and simplify corporate structure including demerger(s), spin-off(s), strategic partnership etc.),” Vedanta said in a stock exchange filing.
Subject to detailed evaluation, it is intended that aluminum, iron and steel, and oil and gas businesses will be placed in standalone listed entities.
This is with the objectives of simplifying and streamlining the corporate structure, unlocking value for all stakeholders and creating businesses that are better positioned to capitalize on their specific market conditions and deliver long-term growth and enable strategic partnerships.
“The Board has also appointed various advisors to assist the Board in evaluating the options,” it said.
The restructuring will also formulate capital structure and capital allocation policies based on business-specific dynamics, create specific investment profiles to attract a deeper and wider investor base; and accelerate emissions reduction and stronger ESG practices.
Agarwal said the board has appointed various advisors to assist in evaluating the options.
He said it is anticipated that the board and advisors will complete their assessment and consider the way forward as soon as practicable.
“Over the years, the Group has materially improved the operating performance of businesses, increased cash flow, reduced debt, as well as investments in energy transition, health and safety, diversification and ESG in general. focused on accelerating
“This move, which we announced today, is designed to create independent, industry-leading, global public companies, where each has greater focus, tailored capital allocation and drive long-term growth, while pending a detailed evaluation. Can benefit from strategic flexibility and value for customers, investors and employees.
“We will continue to leverage our significant strengths in technology, operations and people to better serve our customers and all stakeholders,” he added.
While the London-based parent company will remain the holding company of the diversified mining conglomerate, Vedanta Ltd. and the three businesses will operate in parallel as independent, listed companies, Chairman Agarwal told PTI here.
The company is evaluating all options, including demergers, spin-offs and strategic partnerships, and is considering listing its aluminum, iron and steel, and oil and gas verticals as separate entities.
“All three businesses have great growth potential and we think the model being evaluated will provide natural avenues for growth as well as increase shareholder value,” he said.
Giving an example, he said that once the scheme is approved and implemented, one shareholder of Vedanta will have 4x the shares – in Vedanta as well as in the three businesses.
“It is a global model and if you look at the Indian industry as well, you will find that (the metal flagship of the Aditya Birla group) Hindalco is a different company and so can Tata Steel. And so can we,” he said.
Agarwal said Vedanta’s board has constituted a committee of directors to evaluate and recommend options for restructuring the group.
“The idea is to do it as soon as possible. I can’t give a time frame, but it will be very soon,” he said.
The plan under evaluation is the same as what port-to-energy conglomerate Adani Group did in 2015 when the port, power and power transmission businesses were spun off from Adani Enterprises and listed separately.
Subsequently, a renewable energy firm and a gas utility were also created where Adani got Total France as a strategic partner.
The framework envisaged by Vedanta is in stark contrast to what it has been doing over the years.
The group previously merged Cairn India – the oil and gas company acquired from UK’s Cairn Energy Plc – into Vedanta Ltd. It then tried to liquidate Vedanta through share buybacks but the offer failed to achieve the required numbers.
Agarwal said the framework that is being evaluated is to build businesses that are better positioned to capitalize on their specific market position and deliver long-term growth and enable strategic partnerships.
“The Board of Directors of the Company has decided that, considering the scale, nature and potential opportunities of the Company’s various business verticals, the Company should undertake a comprehensive review of the corporate structure and evaluate a full range of alternatives and alternatives ( To unlock value and simplify corporate structure including demerger(s), spin-off(s), strategic partnership etc.),” Vedanta said in a stock exchange filing.
Subject to detailed evaluation, it is intended that aluminum, iron and steel, and oil and gas businesses will be placed in standalone listed entities.
This is with the objectives of simplifying and streamlining the corporate structure, unlocking value for all stakeholders and creating businesses that are better positioned to capitalize on their specific market conditions and deliver long-term growth and enable strategic partnerships.
“The Board has also appointed various advisors to assist the Board in evaluating the options,” it said.
The restructuring will also formulate capital structure and capital allocation policies based on business-specific dynamics, create specific investment profiles to attract a deeper and wider investor base; and accelerate emissions reduction and stronger ESG practices.
Agarwal said the board has appointed various advisors to assist in evaluating the options.
He said it is anticipated that the board and advisors will complete their assessment and consider the way forward as soon as practicable.
“Over the years, the Group has materially improved the operating performance of businesses, increased cash flow, reduced debt, as well as investments in energy transition, health and safety, diversification and ESG in general. focused on accelerating
“This move, which we announced today, is designed to create independent, industry-leading, global public companies, where each has greater focus, tailored capital allocation and drive long-term growth, while pending a detailed evaluation. Can benefit from strategic flexibility and value for customers, investors and employees.
“We will continue to leverage our significant strengths in technology, operations and people to better serve our customers and all stakeholders,” he added.
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