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Bloomberg has reported that the creditors of Vedanta are likely to meet next month to give their final verdict on the demerger plan. The demerger, according to Vedanta, is a way to simplify its group structure and manage its debt.
Citing sources, the report stated that Vedanta’s creditors have been asked to a court-ordered meeting on February 18, to discuss the details of the plan. Once approved, the proposal will then move to shareholders for their nod.
Back in 2023, Vedanta had announced that the company will split its aluminium, oil & gas, power, steel & ferrous materials, base metals and the currently existing listed entity.
However, in December last year, Vedanta announced that it will not be demerging its base metals business, citing its ongoing exploration of alternative avenues for restarting the Tuticorin copper smelter (non-operational) as the reason behind its revised decision, while also mentioning that lenders believe the scheme would be more favorable for unlocking value and for overall optimal balancing of debt allocation.
Shareholders of Vedanta are slated to receive one share of every demerged entity for every one share they hold in the listed entity as on the record date.
“Deliberations are ongoing and details such as the timing of the meeting and deal structure may still change, the people
said,” Bloomberg reported citing sources.
Shares of Vedanta ended 4.3% higher on Tuesday at ₹431.65. The stock has gained close to 60% in the last 12 months.
