Vedanta looks to consolidate corporate structure

Natural resources major Vedanta said on Tuesday that the company's strategy going ahead is to "simplify and consolidate" its corporate structure.

"Company's stated strategy is to simplify and consolidate its corporate structure. Management reviews options to deliver this strategy on an on-going basis," Vedanta said in a stock exchange filing.

Vedanta would "abide by its obligations to make appropriate disclosures as and when such disclosures are necessitated by decisions taken by the company", the statement added.

Merging Cairn India with itself would provide Vedanta access to the latter's cash and help reduce the debt burden. At the end of March this year, Vedanta had total liabilities worth over Rs 99,000 crore on a consolidated basis.

The Anil Agarwal-led Vedanta recently hiked stake in its oil and gas exploration subsidiary Cairn India by nearly 5 percent, for $315 million from a wholly-owned subsidiary - Twinstar Mauritius Holdings (TSMHL).

Following the share transfer, Vedanta will continue to hold 59.9 percent in Cairn India, of which 25.5 percent will be held directly and 34.4 percent held indirectly through TSMHL.

Vedanta, which changed its name from Sesa Sterlite, is a promoter of Cairn India.

Agarwal had in January said the company is looking at merging Cairn India and Hindustan Zinc into his flagship Vedanta Group firm to create a global natural resources giant to rival Rio Tinto or BHP Billiton.