Vedanta Pledges 5.77% Stake In Hindustan Zinc For Rs 8,000 Crore Term Loan
Hindustan Zinc was a state-owned company till 2002.
New Delhi:
Vedanta Ltd on Wednesday said it has pledged 5.77 per cent stake in Hindustan Zinc Ltd for a term loan of Rs 8,000 crore.
The announcement comes days after the Cabinet Committee on Economic Affairs (CCEA) approved the government’s 29.5 per cent stake sale in Vedanta group firm Hindustan Zinc Ltd (HZL).
“…To secure a term loan facility of Rs.8,000 crore… undertaking) (50.10 per cent of HZL’s paid-up share capital) in respect of its stake in HZL,” the metals and mining major said in a filing to BSE.
The company further said that Vedanta had made up for a total of 64.92 per cent of Hindustan Zinc’s paid-up share capital, as a pledge to secure a syndicated term loan facility of Rs 10,000 crore – 14.82 per cent of the paid-up share capital of HZL. The up share capital of – and the non-disposal undertaking – 50.10 per cent stake – was issued.
“… none of the shareholding of VEDL (Vedanta Ltd.) in HZL is encumbrance for any personal borrowing of any promoter/promoter group of HZL and this is an undertaking by VEDL to maintain its present shareholding in HZL . Rest of the lenders of VEDL,” the filing added.
Hindustan Zinc was a state-owned company until 2002. In April 2002, the government sold a 26 per cent stake in HZL to Sterlite Opportunities and Ventures Ltd for Rs 445 crore – giving Vedanta Group management control in HZL.
The Vedanta Group subsequently bought 20 per cent from the market in November 2003 and another 18.92 per cent from the government, taking its ownership of Hindustan Zinc to 64.92 per cent.
