Vedanta Ltd.’s creditors will convene on February 18 to finalize their decision on a proposal to divide the Indian mining conglomerate into five distinct businesses. This move is part of a broader strategy to streamline operations and manage the company’s significant debt.
The scheme of arrangement would divide Vedanta’s businesses into an aluminum, oil and gas, power, steel, and a semiconductor-focused business. The old entity would retain the electronics and copper assets. Secured lenders had approved an earlier restructuring plan in 2023 with 75% in favor, but what this new plan needs to progress is the final nod from creditors. After that, it needs shareholder approval.
Vedanta announced the restructuring late last year to increase its valuation and reduce debt at parent Vedanta Resources. The stock has risen more than 50% in the past year, equivalent to a market value of about $19 billion, even though deliberations are still on and the proposal may be amended.
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Source: Moneycontrol
News Desk
