New Delhi: Weeks after government-appointed valuers visited the sites of Hindustan Zinc and Balco, Vedanta Resources Chairman Anil Agarwal on Friday discussed with Finance Minister Arun Jaitley issues related to residual stake sale in the erstwhile state-owned firms.
Talking to reporters after the meeting here, Agarwal said Jaitley did not give any timeline for the divestment of the government's 29.5 percent holding in HZL and 49 percent in Balco, but added that the discussions were positive.
"Vedanta remains aligned and confident that government is progressing well with its forward looking disinvestment policy," a company spokesperson said later.
Sources said the government-appointed valuers visited various plants of Hindustan Zinc and Balco a few weeks back and they are likely to submit their report to government soon.
London Stock Exchange-listed metal, mining, oil and gas major Vedanta Resources, which holds 64.9 percent stake in HZL and 51 percent stake in Balco, had offered over USD 2.57 billion and USD 296.5 million respectively to buy government's residual stakes in these two firms in January 2012.
In August 2012, it got shareholders' approval to raise the offer by around 25 percent. The one-year approval period has expired.
Announcing the half-yearly result last evening, Vedanta said: "We continue to work towards the minority buyouts of HZL and BALCO, for which government is currently conducting its own valuation exercise."
Vedanta had in April 2002 bought 26 percent stake in HZL. It had two call options to purchase all of the government of India's shares in HZL at fair market value. It exercised the first call option on August 29, 2003 and acquired 18.9 percent additional stake in the company.
Vedanta also acquired additional 20 percent stake in HZL through an open offer, increasing its shareholding to 64.9 percent. To acquire government's remaining 29.5 percent share in HZL, it had exercised the second call option in 2009 which was disputed by the government.
Consequently, Vedanta invoked arbitration and filed a statement of claim. The arbitration proceedings are under progress in early stages. The next date of hearing is fixed on February 23, 2015.
Vedanta had bought 51 percent holding in BALCO from the Government on March 2, 2001. Under the terms of shareholder's agreement, it has a call option that allows it to purchase the government's remaining ownership at any point from March 2004.
The Group exercised this option on March 19, 2004 which the government had contested. It is also sub-judice now and is scheduled for final hearing on February 9, 2015.
The offer made in 2012 was separate from the contested exercise of the call options and Vedanta proposed to withdraw ongoing litigations in relation to the contested exercise of the options should the offer be accepted.
