The Cabinet Committee on Economic Affairs (CCEA) has approved the sale of its remaining 29.5 per cent stake in Hindustan Zinc Ltd (HZL) as the centre looks to accelerate its disinvestment drive with some key privatisation proposals hitting hurdles.
The sale of the entire 29.5 per cent stake in HZL would fetch the centre about Rs 38,560 crore at current share market price.
The government may sell its shares in tranches through offer for sale (OFS), and the sale will be structured by the Department of Investment and Public Asset Management (DIPAM), an official said.
In 2002, the government had sold its 26 per cent stake to Vedanta’s Sterlite Industries, and another 19 per cent was bought by the Anil Agarwal managed conglomerate in 2003. In 2009, the company had exercised a call option as per the shareholders’ purchase agreement, which was contested by the centre which led to Vedanta filing an arbitration to claim settlement. With the conglomerate now withdrawing the arbitration proceedings against the centre, the development has cleared the path for the government to sell its 1.24 billion shares.
Presently, Vedanta owns 64.9 per cent stake in Hindustan Zinc. Vedanta Ltd’s Anil Agarwal recently said the company can buy just 5 per cent additional stake in the HZL considering the price of the shares on offer.
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