In a filing to the BSE, Sesa Goa said, 91.70% of voters - representing 79.12% of votes in value favored the merger resolution
In a filing to the BSE, Sesa Goa said at a meeting of its shareholders held on June 19, at Goa, 91.70% of voters - representing 79.12% of votes in value - favoured the merger resolution.
The scheme has been approved by the equity shareholders with requisite majority and now awaits the approval of the High Court of Bombay at Goa, Sesa Goa said.
The shareholders of Sterlite Industries also approved the merger proposal by a majority of 92% of votes in value at a meeting held on June 21 in Tuticorin. The merger is now subject to the approval of the High Court of Madras, Sterlite Industries said in a separate filing to the stock exchange.
The proposal covers Sesa Goa, Sterlite Industries, Madras Aluminium Co Ltd, Sterlite Energy Ltd and Vedanta Aluminium Ltd.
The London Stock Exchange-listed Vedanta Resources had in February announced its plan to restructure its operations. It was planned that all its subsidiaries, except Konkola Copper Mines, will be merged into Sesa Goa and post-restructuring, a new entity, Sesa Sterlite, would be carved out.
The restructuring will lead to Vedanta's debt burden falling by about 61% to $3.8 billion. Besides, its debt service liability will come down to $180 million from current levels of $500 million.
However, Sesa Sterlite would end up with a total debt of about $14 billion.
The merger would create seventh largest natural resources company of the world (in terms of EBITDA) and a cost saving of Rs 1,000 crore annually, Vedanta had said earlier.
This is second restructuring exercise being attempted by Vedanta Resources as its first attempt in 2008 had failed due to objections raised by some minority shareholders over the valuation of a group firm, Konkola Copper Mines.
Post merger, Vedanta will hold 58.3% stake in Sesa Sterlite. As per the scheme of arrangements, Sterlite shareholders will get three shares of Sesa Goa for every five shares held according to the swap ratio.
Cairn India, Hindustan Zinc, Balco, Vedanta Aluminium, Madras Aluminium, Talwandi Sabo Power and Australian Copper Mines will become subsidiaries of Sesa Sterlite after the restructuring.
Shares of Sesa Goa was trading 0.67% up at Rs 187.15 on the BSE, while Sterlite Industries rose by 0.45% to Rs 100.10.
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