Vedanta Arm Hindustan Zinc To Evaluate Corporate Restructuring

Hindustan Zinc Ltd., a subsidiary of Vedanta Ltd., said its board authorized a committee to evaluate corporate restructuring exercise to unlock value for stakeholders.

The board decided that Hindustan Zinc should undertake a comprehensive review of its corporate structure for unlocking value considering the company’s scale, nature, and potential opportunities for various business verticals, India’s largest integrated zinc producer said in a stock exchange announcement today.

Hindustan Zinc, which also produces lead, silver and sulfuric acid, said the idea is to create separate legal entities for undertaking the zinc and lead, silver and recycling business of the company.

The committee of directors will evaluate and recommend such options and alternatives to the board, it added.

The strategic objectives outlined by the board for undertaking such an exercise are:

• Unlocking value for all stakeholders

• Creation of businesses, which are positioned to better capitalize on their distinct market positions and deliver long-term growth

• Distinct investment profiles to attract deeper and broader investor bases

• Accelerate toward sustainability goals focused on waste-to-wealth, emissions reduction and strong environmental, social, and governance (ESG) practices

• Appropriate capital structure and capital allocation policies based on business specific dynamics

• Sharpen focus on core competencies and appropriate realignment of the company’s resources

The management will appoint external advisors to assist in evaluating the options and together will update the way forward to the board, according to the statement.

The company didn’t provide a timeline for completing the review of its corporate structure.

Billionaire Anil Agarwal-controlled Vedanta owns a 64.9% stake in Hindustan Zinc, while the Indian government holds a 29.5% stake in the company.

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