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Vedanta Ltd.’s plans to demerge its Indian businesses might face some setback in CreditSights’ view. They said that Vedanta’s plans could face “major hurdles from minority shareholders and/or creditors, which may delay or derail the deal”. This comes especially on the the back of Hindustan Zinc (Vedanta’s subsidiary) which might not get the required 75% shareholders’ approval especially after recent issues between Vedanta and the government. Vedanta and the government, which owns a 29.5% in Hindustan Zinc, have had disagreements last year beginning with Vedanta’s planned sale of its offshore zinc assets to Hindustan Zinc, which the Centre said it would block. CreditSights further noted that the demerger “will not fundamentally and significantly address” Vedanta Resources’ “ability to service its debt obligations, and will in fact complicate its corporate structure”.
Vedanta’s dollar bonds were trading steady with its 9.25% 2026s at 83.26, yielding 19.3%.
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