Vedanta Resources, billionaire Anil Agarwal-promoted metal and mining company, said it had cancelled the group restructuring plan announced earlier this month.
Under the restructuring plan, Sterlite Industries, the flagship company of the group, would have sold its 51 per cent stake in Bharat Aluminium Company (Balco) and a 29.5 per cent stake in Vedanta Aluminium Company to Madras Aluminium Company (Malco), another subsidiary of Vedanta Resources. Besides, Sterlite Industries would have also sold its stake in the power business subsidiary, Sterlite Energy (SEL), to Malco.
This would have put all the aluminium and power businesses of the group under one unit, Malco. The company had also proposed to rename Malco as Sterlite Aluminium. It would have helped Sterlite Industries to remain as a business unit focused on copper, zinc and lead.
The restructuring was effectively increasing the stake of promoters in businesses such as zinc and aluminium, while it was bringing down their stake in the copper business. A section of shareholders had taken strong criticism of the restructuring plan.
The company is a statement to Bombay Stock Exchange attributed the decision to not pursue the restructuring plan to "the recent changes in the global financial markets and investor feedback."
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