Exclusive: Every decision will be in favour of shareholders, says Vedanta's Anil Agarwal

Vedanta Group urged govt to sell its 29 per cent stake in Hindustan Zinc, as they had agreed to sell a 100 per cent stake 20 years ago. Meanwhile, Agarwal said that every decision will be in the favour of our shareholders. Currently, the company has no delisting plans.

Vedanta Group asked govt to sell its 29 per cent stake in Hindustan Zinc, as they had agreed to sell a 100 per cent stake 20 years ago. Photo credit: Vedanta

Vedanta Resources chairman Anil Agarwal on Monday said that 30 per cent of shareholders are happy with the company and every decision will be taken keeping them in mind. In an exclusive conversation with Zee Business Managing Editor Anil Singhvi, Agarwal also talked about his business plans, debt, and delisting plans.

“Our 30 per cent shareholders are happy with us and we give them very good dividends,” said Agarwal.

When asked about the controversy revolving around the Hindustan Zinc deal by Anil Singhvi, Agarwal said, “He has no idea why govt doesn't want to sell its stake in Hindustan Zinc Limited (HZL). But if the deal happens, the government will be making a profit to the tune of Rs 40,000–50,000 crore alongwith royalty."

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It is to be noted that Vedanta Group asked govt to sell its 29 per cent stake in Hindustan Zinc, as they had agreed to sell a 100 per cent stake 20 years ago. Agarwal emphasised that the process should be expedited and that the government had agreed to give Vedanta the remaining stake under specific terms.

Meanwhile, Agarwal said that every decision will be in the favour of our shareholders, and stressed that they don’t have any delisting plans for now.

Vedant Group has a Zinc asset in South Africa which it bought for $2.9 billion. The assets are profitable and will help HZL grow robustly.

“If both companies are merged, it will be a long-term working together. We will make zinc, silver, fertilizers, and others,” said Agarwal. Currently, one company is with Hindustan Zinc and the other is with Vedanta, both are being run separately.

There are mining skills in South Africa and because of their technology, we will be able to grow fast, Agarwal further added.

Recently, Anil Agarwal reiterated his stance on Vedanta Resources' proposal to sell its global zinc assets, and he encouraged the government to sell its holdings in Hindustan Zinc Ltd. He forewarned the administration that without the agreement, Hindustan Zinc will begin to decline.

On January 19, Vedanta Limited announced that the proposed transaction for a cash consideration of $2,981 million has received board approval.

"...considered and approved the proposed sale of its Zinc International assets held by THL Zinc Ventures Ltd (Mauritius), a direct wholly owned subsidiary of the company... to the proposed wholly owned subsidiary of Hindustan Zinc Limited, another listed subsidiary of the company, for a cash consideration not exceeding $2,981 million (in a phased manner basis agreed milestones)..." the company had said in a regulatory filing.

The agreement, according to the government, is against the interests of minority shareholders and violates standards of corporate governance. Therefore, the deal is opposed.

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