India-focused miner Vedanta, responding to speculation it could merge two separately listed Indian subsidiaries, said on Tuesday it aimed to simplify and consolidate its structure as part of its strategy, but gave no specific detail.
Vedanta -- a FTSE 100-listed miner which produces commodities including aluminium, copper, zinc, lead, iron ore, oil and gas -- trades at a discount to the sector, because of its gearing and because of a structure which means it finds it harder to repatriate cash from subsidiaries to service group debt.
Media reports had said Vedanta was considering a move to restructure Sterlite and Sesa Goa, potentially merging the two. It owns almost 55% of Sterlite and just over 55% of Sesa Goa.
"Vedanta's stated strategy is to simplify and consolidate its corporate structure," the company said in a statement. "Management reviews options to deliver this strategy on an ongoing basis and will update the market as appropriate."