Vedanta plans to pay extra for acquiring HZL, BALCO stake

NEW DELHI: Vedanta is expected to pay extra Rs 21,635 crore, which is about 25% more than planned, for acquiring Government's remaining stakes in Hindustan Zinc and BALCO since its past offers were accepted so far.

Vedanta is slated to hold a shareholders meet on August 28 in London alongside its annual general meeting with the aim to bag approval for higher price for buying the remaining government stakes in both the companies.

This acquisition deal alone has potential to meet more than 72% of Centre's disinvestment target worth Rs 30,000 crore for this year.

In 2001, Vedanta purchased 51% stake in BALCOin 2001 and 64.9% stake in Hindustan Zinc Ltd (HZL) in fiscal 2002-2003.

In January, it offered to pay Rs 15,493 crore for acquiring 29.5% stake in HZL and Rs 1,782 crore for 49% remaining holding in BALCO.

After receiving shareholders nod, the company Board would be allowed to increase the offer price up to Rs 18,606.10 crore for HZL and up to Rs 3,028.78 crore for BALCO.