Sterlite to raise 2 bn dlr for buyouts, power plant
Vedanta Resources group firm Sterlite Industries is going to raise $ 2 billion through issue of American Depository Shares (ADS) for buyouts, increasing stake in subsidiaries and setting up of a power plant.
By PTI |
NEW DELHI: Vedanta Resources group firm Sterlite Industries is going to raise $ 2 billion through issue of American Depository Shares (ADS) for buyouts, increasing stake in subsidiaries and setting up of a power plant.
"We intend to use the net proceeds from this offering for general corporate purposes, including capital expenditures and working capital, reduction of debt and for possible acquisitions of complementary businesses and consolidation of the ownership of our subsidiaries," Sterlite Industries said in a filing to the Securities and Exchange Commission.
The ADSs would be listed on the New York Stock Exchange under the symbol 'SLT' and the price to the public per ADS may not be less than Rs 531.84 Sterlite added.
The company is planning to acquire the remaining 29.5 per cent ownership interest of Government of India in Hindustan Zinc Ltd, which would amount to around Rs 9,227.3 crore (2273.9 million dollar) through the proceeds of this offering.
"If the government sells its remaining ownership interest in HZL through a public offer, we may look into alternative means of increasing our ownership interest in HZL," said Sterlite.
The company could also enter the commercial power generation business in India by building the first phase, totalling 2,400 MW, of thermal coal-based power facility in Orissa for around Rs 8,730.5 crore (1,900.0 million dollar) over four years, it said in the filing.
Sterlite expects the proceeds from this offering would be used toward only a portion of this project while a significant part of about 70 per cent would be funded by external debt.
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