Sesa Goa shareholders meet June 19 on Sterlite merger

Merger will create world's 7th largest natural resources firm in terms of Ebidta

Sesa Goa today said its shareholders will meet on June 19 for approving the proposed merger of Sterlite Industries and other group firms as announced by its parent firm Vedanta Resources in February.

"A meeting of the equity shareholders of Sesa Goa is being convened and will be held on June 19, 2012, for the purpose of considering...The proposed arrangements embodied in the scheme of amalgamation and arrangement amongst Sterlite Industries, Madras Aluminium, Sterlite Energy, Vedanta Aluminium and Sesa Goa," it said in a filing to the BSE.

The meeting has been convened following a direction by Goa bench of the Bombay High Court on April 27, it added.

The merger, which will lead to creation of a new entity, Sesa Sterlite, is aimed at simplifying the group structure of London-listed Vedanta group and would create seventh largest natural resources company of the world (in terms of EBITDA).

According to the restructuring exercise, Sesa Sterlite will become the holding company of Vedanta's all group firms, except Konkola Copper Mines. Post merger, Vedanta will hold 58.3% stake in Sesa Sterlite.

For the merger, Sesa Goa has secured approvals from the stock exchanges where it is listed (the BSE and the NSE) and the Competition Commission of India so far.

Besides, it also requires nod of the Foreign Investment Promotion Board (FIPB) as some of the group firms are registered outside India.

The Goa-based miner had said earlier that it expects to complete the merger process by December-end.

Post merger, Cairn India, Hindustan Zinc, Balco, Vedanta Aluminium, Madras Aluminium, Talwandi Sabo Power and Australian Copper Mines will become subsidiaries of 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.

Shares of Sesa Goa were trading at Rs 177.20 on the BSE at 1420 hrs, down 1.86% from the previous close.