Vedanta Resources has announced plans to sell Skorpion Zinc in Namibia as part of a larger disposal of its international zinc operations.
The proposed transaction, valued at N$51.5 billion (US$2.98 billion) in cash, will see Vedanta’s 100% stake in HL Zinc Namibia holdings and 69.6% stake in Black Mountain Mining sold to Hindustan Zinc Limited.
This proposed transaction will allow Hindustan Zinc to acquire two major zinc operations, Skorpion Zinc in Namibia and Black Mountain Mining in South Africa, and expand its international footprint.
This move will also allow Vedanta to focus on its core operations, reducing its debt and simplifying its corporate structure.
The company owns approximately 65% of Hindustan Zinc, with the Indian government holding the remaining 30%.
Through this transaction, Hindustan Zinc will be able to grow and expand its overseas presence, taking its brand global.
The deal is significant for Vedanta’s billionaire-owner Anil Agarwal, who is seeking to simplify the corporate structure of his commodities empire and reduce Vedanta Resources’ debt.
The company currently has US$900 million of debt due in the first half of 2023.
Source: The Brief