Vedanta Ltd announced that it will sell its Zinc International assets to Hindustan Zinc Limited for $2,981 million in cash. The company’s board of directors approved the sale of its Zinc International assets held by THL Zinc Ventures Ltd (Mauritius), a wholly owned subsidiary of Vedanta, through THL Zinc Ltd. (Mauritius). Hindustan Zinc will become a wholly owned subsidiary of THL Zinc Ltd.
“Board of Directors of the Company, in its meeting held today, considered and approved the proposed sale of its Zinc International assets held by THL Zinc Ventures Ltd (Mauritius) (“THLZV”), a direct wholly owned subsidiary of the Company, through THL Zinc Ltd (Mauritius) (“THLZ”) comprising shares held in Black Mountain Mining Pty Ltd, South Africa (69.6%) and THL Zinc Namibia Holdings (Pty) Ltd (100%), Namibia, to the proposed wholly owned subsidiary (“SPV”) of Hindustan Zinc Limited (“HZL”) another listed subsidiary of the Company, for a cash consideration not exceeding USD 2,981 million (in a phased manner basis agreed milestones), such that THLZ becomes a wholly owned subsidiary of the SPV.,” Vedanta said in its regulatory filing.
The cash consideration will be paid out in stages based on agreed-upon milestones. The proposed transaction is conditional on receiving the necessary regulatory approvals.