By Malvika Gurung
Investing.com -- The mining company Vedanta Ltd (NS: VDAN ) will present the outlines of a proposal to spin off its key businesses into separate entities by March-end, stated the company’s Chairman Anil Agarwal, as per a PTI report.
The metals and mining group’s board of directors had met on Nov 17 to discuss and evaluate all the options, including demergers, spin-offs and strategic partnerships to independently list its aluminium, iron and steel, and oil and gas verticals, for unlocking maximum shareholder value.
Vedanta already has an independently listed zinc subsidiary, Hindustan Zinc Ltd. (NS: HZNC ), and plans to demerge its aluminium, iron and steel, and oil and gas businesses into standalone listed entities.
This is done to simplify and streamline Vedanta’s complex business structure, to create value.
Vedanta believes that the three businesses independently have great potential to ace their respective sectors, considering the scale, nature, and potential opportunities of these business verticals.
Listing the diversified verticals into separate entities would allow Vedanta’s shareholders to hold four times the number of shares.
It will also help tailor capital structure and capital allocation policies based on business-specific dynamics as also create distinct investment profiles to attract deeper and broader investor bases, added the report.
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