The sale of Vedanta Resources’ offshore zinc assets to Hindustan Zinc for $2.98bn may not take place due to the government’s opposition, as per sources. The sources said that Hindustan Zinc has dropped the plans as of now. Another source said that Hindustan Zinc has not yet presented any non-cash deal to the government and that it is “likely to hold its next board meeting on April 21, by which time the current proposal would have lapsed”. Vedanta was planning to acquire an additional 6% stake in Hindustan Zinc as and when the government sells its holding. However, the government is not in favor of selling its stake since it would then lose special rights over the company. Vedanta currently owns a 64.9% stake in Hindustan Zinc and the government holds at 29.6% stake.

Vedanta’s dollar bonds were trading flat with its 13.875% 2024s currently at 83.75 cents on the dollar. 

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