Vedanta’s stipulated time limit to sell its international zinc asset to Hindustan Zinc Ltd (HZL) has lapsed as the company did not obtain shareholders’ approval, said two sources. Government representatives on HZL’s board had opposed the $2.98bn cash sale of the zinc assets to HZL. Following this, HZL had three months to call for an EGM to get approval from its minority shareholders, and this has now lapsed.
Separately, Vedanta has pledged another 1.91% of its equity stake in HZL. So far with the latest pledge, 94.29% of Vedanta’s 64.92% stake in HZL has now been pledged. The company has entered into a term loan agreement under which one of the security covers includes pledging shares of HZL.
Vedanta’s dollar bonds were trading stable – its 7.125% bond due May 31 ticked is currently at 98 cents on the dollar.