Plans to buy Zinc International is not called off: Hindustan Zinc CEO

Hindustan Zinc CEO Arun Mishra has said that the plans to buy overseas asset from the company's parent firm Vedanta Ltd has not been called off yet.

The Chief Executive officer (CEO) made the remarks during an earnings call.

When asked about Zinc International's acquisition and whether the plan is still under works, Mishra replied "Unless we the board passes a resolution withdrawing this, till that time, it is not called off."

Zinc International acquisition was a great idea, he said, adding the company's board has also approved the proposal.

"...we are working on it, and we still believe that this is something that we must do for the sake of Hindustan Zinc. So, we will see where it ends," the CEO said.

The government, which owns about 29.54 per cent stake in HZL, has opposed the company's plan to buy overseas asset of its parent firm Vedanta Ltd.

The government has opposed Vedanta Ltd's proposal to sell its international zinc business to HZL for USD 2.98 billion over concerns of valuation. The government has even threatened to take legal action to stop the sale of the Africa-based assets to HZL.

On the offer for sale (OFS), Mishra said, "We were expecting before March 31, but it has not happened. I'm sure the government will be looking at some suitable opportunities, timing in the market. When the market will have the capacity to absorb."

In February, DIPAM (Department of Investment and Public Asset Management) Secretary Tuhin Kanta Pandey had said the government is likely to sell a part of its residual stake in Hindustan Zinc Ltd by next month to help it achieve the revised disinvestment target of Rs 50,000 crore for FY23.