Business Standard

Vedanta-Hindustan Zinc deal worry may hit divestment plan for FY23

Centre's opposition to the Vedanta-HZL deal is on account of valuation and the deal being a related-party transaction

Centre had planned to disinvest entire 29.5 per cent residual stake in Hindustan Zinc in tranches, with sale of first tranche to be completed by end of this fiscal year
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Centre had planned to disinvest entire 29.5 per cent residual stake in Hindustan Zinc in tranches, with sale of first tranche to be completed by end of this fiscal year (Illustration: Binay Sinha)

Shrimi Choudhary New Delhi
The Centre’s plan to sell its residual stake in Hindustan Zinc (HZL) could face a stumbling block because of its opposition to the company’s proposed $2.98-billion acquisition of zinc assets from Vedanta.

The Centre’s opposition is on account of valuation and the deal being a related-party transaction.
 
The recent development will likely impact the ongoing divestment plan because the issue has created uncertainties among investors, making them cautious about picking a stake in HZL, a senior government official told Business Standard.
 
The government had expected to sell part of its stake in HZL this fiscal year. The transaction, if executed, could

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First Published: Feb 27 2023 | 11:06 PM IST

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