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A day after Vedanta Group firms Sesa Goa and Sterlite Industries merged to create Sesa Sterlite, the company today said the group's Chairman Anil Agarwal will head the new entity.
"Anil Agarwal, Navin Agarwal and M S Mehta have been appointed as Chairman, Executive Vice Chairman and Chief Executive Officer, respectively, for Sesa Sterlite," Vedanta said in a statement today.
The statement said the group consolidation and simplification has received all the necessary approvals and thereby the merger of its subsidiaries Sesa Goa and Sterlite Industries has become effective, to create Sesa Sterlite.
"The consolidation will create world's seventh largest global diversified natural resources major...Ranked by EBITDA for the 12 months ended December 2012 from public filings and pro-forma EBITDA for the 12 months ended March 2013 for Sesa Sterlite, with a world-class, low cost asset base in close proximity to high growth markets," it added.
Increased diversification is expected to reduce volatility of earnings through commodity cycles, lowering the cost of capital and enhancing value, it said.
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 asset base will benefit from the previously announced capex programme that has largely been invested.
The company said 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 Rs 71,780 crore ($13.2 billion) and EBITDA of Rs 25,232 crore ($4.6 billion) with a strong balance sheet having cash and liquid investments of Rs 42,060 crore ($7.7 billion) and net debt/EBITDA of 1.4 times," it said.
The group firms Sesa Goa and Sterlite Industries had yesterday announced that their merger scheme, together with several other group firms, has now become effective, a development which came within a week of a final approval for merger from the Goa bench of Bombay High Court.
The company said the record date "for determining the shareholders to whom the equity shares of Sesa Goa will be allotted as per terms of the scheme" has been fixed as August 28.
The merger of Sterlite and Malco into Sesa Goa has become effective pursuant to the scheme of amalgamation and arrangement amongst Sterlite, Malco, Sterlite Energy, Vedanta Aluminium and Sesa Goa and their shareholders and creditors.
