Sterlite surges over 8% as Vedanta drops restructuring
Sterlite Industries India Ltd has decided not to pursue the proposed restructuring scheme, in view of the recent changes in the global financial markets and investor feedback.
By ET Online |
MUMBAI: Sterlite Industries India Ltd has decided not to pursue the proposed restructuring scheme, in view of the recent changes in the global financial markets and investor feedback. This was decided at an urgent meeting of the board on Wednesday. However, the company said it is committed to simplifying and streamlining the group corporate structure in the interest of all shareholders.
Earlier in the month, Anil Agarwal promoted Vedanta Resources announced a restructing of group companies, wherein Sterlite Industries would sell its aluminum and power businesses to Madras Aluminium Company. Sterlite stockholders were to get seven shares of MALCO, while shareholders of the latter would get one Sterlite share for every 51 held.
Vedanta Resources also announced plans to invest $9.8 billion to become the world's fifth-largest aluminum producer. The company will raise annual smelting capacity to almost 2.6 million metric tonne by 2012. It plans to build an aluminum smelter and power plant in Orissa. Vedanta will also expand a refinery producing alumina, the raw material used to make the metal.
Shares of Sterlite Industries soared 8.31 per cent to Rs 487.35 on the news and that of Madras Aluminium rose nearly 5 per cent to Rs 128.55 on BSE.
Earlier in the month, Anil Agarwal promoted Vedanta Resources announced a restructing of group companies, wherein Sterlite Industries would sell its aluminum and power businesses to Madras Aluminium Company. Sterlite stockholders were to get seven shares of MALCO, while shareholders of the latter would get one Sterlite share for every 51 held.
Vedanta Resources also announced plans to invest $9.8 billion to become the world's fifth-largest aluminum producer. The company will raise annual smelting capacity to almost 2.6 million metric tonne by 2012. It plans to build an aluminum smelter and power plant in Orissa. Vedanta will also expand a refinery producing alumina, the raw material used to make the metal.
Shares of Sterlite Industries soared 8.31 per cent to Rs 487.35 on the news and that of Madras Aluminium rose nearly 5 per cent to Rs 128.55 on BSE.
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