Dollar bonds of Vedanta Resources were higher by 2% across the curve. News media reported that Hindustan Zinc was planning to reach out to the mining ministry to resolve differences over Vedanta Ltd’s acquisition of overseas assets. Objections were raised by government directors on Hindustan Zinc’s nine-member board regarding the planned $3bn overseas asset sale of Vedanta to Hindustan Zinc. Vedanta owns 64.92% equity in Hindustan Zinc while the government holds a minority 29.54% stake. A source said that, “The ownership of both the companies lies with Vedanta. Therefore, there is no need to buy the overseas asset”. However, Hindustan Zinc has previously said that the acquisition of Vedanta’s offshore zinc asset was “approved by the Board of Directors” and added that the proposed transaction was an attractive opportunity for Hindustan Zinc to grow and increase its overseas foothold. Besides, Vedanta’s bonds also saw a positive announcement earlier that the company cut its net debt by $2bn in the current financial year, faster than it initially expected.
Vedanta’s 6.125% 2024s were up 1.4 points to trade at 74.1, yielding 29.1%.
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