‘Vedanta will pay right price for Hindustan Zinc, Balco stakes’

By IANS,

New Delhi: Vedanta will pay the right price for buying out the government’s remaining stake in Hindustan Zinc Ltd (HZL) and Bharat Aluminium Company (Balco), its chairman Anil Agarwal said Tuesday.


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“Whatever is the right price, there is a process to be adopted. We know this is the process, transparent process and whatever is the price, that’s the price,” Agarwal said in an interaction here with media persons.

He was responding to a question on whether the company would better its offer from the one made in January.

The government currently holds 29.5 percent stake in HZL and 49 percent stake in Balco. The majority stakes in both were sold to Vedanta Resources during 2001-2003.

The mining major had offered Rs.17,275 crore in January 2012 for the government’s remaining stakes in HZL and Balco.

Vedanta later also got its shareholders approval to raise the offer by up to 25 percent in the two firms.

The company is awaiting a response from the government on its January offer.

“They (the government) have asked us…they have been talking to us and are very keen. I believe some decision will come. We are also little nervous… we will work with government,” Agarwal said.

Hindustan Zinc reported a net profit of Rs.5,526 crore and net revenues of Rs.11,405 crore in 2011-12 and has become the richest profit-making subsidiary of Vedanta.

Balco is an unlisted subsidiary of Vedanta.

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