Sesa Goa and Sterlite Industries Merger becomes Effective

Sesa Goa and Sterlite Industries Merger becomes Effective

The proposed Vedanta Group Consolidation and Simplification has received all necessary approvals and thereby the merger of its subsidiaries Sesa Goa Limited (‘Sesa Goa’) and Sterlite Industries (India) Limited (‘Sterlite’) has become effective, to create Sesa Sterlite Limited (‘Sesa Sterlite’).

 

Sesa Goa and Sterlite Industries Merger becomes EffectiveThe proposed Vedanta Group Consolidation and Simplification has received all necessary approvals and thereby the merger of its subsidiaries Sesa Goa Limited (‘Sesa Goa’) and Sterlite Industries (India) Limited (‘Sterlite’) has become effective, to create Sesa Sterlite Limited (‘Sesa Sterlite’).

Anil Agarwal, Navin Agarwal and M S Mehta have been appointed as Chairman, Executive Vice Chairman and Chief Executive Officer, respectively, for Sesa Sterlite.

28 August, 2013 has been fixed as the Record date for determining the shareholders to whom the equity shares of Sesa Goa will be allotted as per terms of the scheme. The consolidation will create world’s seventh largest global diversified natural resources major by EBITDA Ranked by EBITDA for the twelve months ended December 2012 from public filings and pro-forma EBITDA for the twelve months ended March 2013 for Sesa Sterlite, with a world-class, low cost asset base in close proximity to high growth markets. Increased diversification is expected to reduce volatility of earnings through commodity cycles, lowering the cost of capital and enhancing value.

Sesa Sterlite will have exposure to zinc-lead-silver, iron ore, oil & gas, copper, aluminium and commercial power, with assets located in India, Australia, Liberia, South Africa, Namibia, Ireland and Sri Lanka. This world class asset base will benefit from the previously announced capex programme that has largely been invested.

The consolidation will result in significant operational, capital and corporate synergies and will be earnings accretive to all shareholders. In the financial year ended March 31, 2013, on a consolidated basis, Sesa Sterlite would have generated revenue of INR 71,780 crores ($13.2 billion) and EBITDA of INR 25,232 crores ($4.6 billion) with a strong balance sheet having cash and liquid investments of INR 42,060 crores ($7.7 billion) and net debt/EBITDA of 1.4 times.

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