Vedanta Ltd, which is active in the mining business, has secured approval from most lenders for its proposal to demerge its business. This is an important step towards the company’s plan to split into six independent listed companies. Meanwhile, shares of Vedanta saw a strong rally on Thursday and rose 2% to Rs. closed at 450.45.
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What did the company official say?
A senior executive of Vedanta said in a recent ‘conference call’ with bondholders – I am happy to tell you all that we have got more than 52 per cent approval, which is required to take us to 75 per cent. We have crossed that limit too. Most lenders allow it. He said that some committee meetings are pending and some Board of Directors meetings are pending. So, as we speak, we have already got 52 percent approval. The rest will be completed in a week or 10 days. After this we will apply to NCLT.
SBI approval has already been obtained
According to a bank official, State Bank of India (SBI), the group’s main lender, has already given its consent. This landmark approval is seen as the last major compliance requirement for the company, which was closely watched by the market. This paves the way for a $20 billion split.