Message Ven 6 Avr 2012 12:36

Vedanta resources plc — Presentation Transcript

Petit rappel.

Vedanta resources plc — Presentation Transcript

1. Vedanta Resources Plc is a global diversified metals and mining companyIt is headquartered in London, United Kingdom.Company’s assets and operations are located in the high growth markets ofIndia, Zambia, Namibia, South Africa, Liberia, Ireland and AustraliaCompany is primarily engaged in copper, zinc, silver, aluminium, iron ore andpower business.It is the largest mining and non-ferrous metals company in India

2. The company was founded by Anil Agarwal in Mumbai in 1976.It was first listed on the London Stock Exchange in 2003 whenit raised $876 million through an Initial Public Offering. Meanwhile in 2006 it acquired Sterlite Gold, a gold miningbusiness.

3. It raised an additional $2bn through an ADR issue in 2007.In 2008 it bought certain of the assets of Asarco, a coppermining business for $2.6bn.In December 2011 it also completed the US$8.67 billionacquisition of Cairns Indian unit heralding its foray in the oilsector.

4. CopperSterlite Industries (India) Ltd.: Sterlite is registered office headquartered in Tuticorin, India.Sterlite has been a public listed company in India since 1988, and itsequity shares are listed and traded on the NSE and the BSE, and are alsolisted and traded on the NYSE in the form of ADRs.Vedanta owns 53.9% of Sterlite and have management control of thecompany.

5. Konkola Copper Mines:Vedanta own 79.4% of KCM’s share capital and have managementcontrol of the company.KCM’s other shareholder is ZCCM Investment Holdings Plc.The Government of Zambia has a controlling stake in ZCCM InvestmentHoldings Plc.Copper Mines of Tasmania Pty Ltd.:CMT is headquartered in Queenstown, Tasmania. Sterlite owns 100.0%of CMT and has management control of the company.

6. ZincHindustan Zinc Limited:HZL is headquartered in Udaipur in the State of Rajasthan.HZL’s equity shares are listed and traded on the NSE and BSE.Sterlite owns 64.9% of the share capital in HZL and has managementcontrol.Sterlite has a call option to acquire the Government of India’sremaining ownership interest.

7. AluminiumBharat Aluminium Company Ltd.:BALCO is headquartered at Korba in the State of Chhattisgarh.Sterlite owns 51.0% of the share capital of BALCO and has managementcontrol of the company.The Government of India owns the remaining 49.0%.Sterlite exercised an option to acquire the Government of India’sremaining ownership interest in BALCO in March 2004.

8. Vedanta Aluminium Ltd.:Vedanta Aluminium is headquartered in Jharsuguda, State of Orissa.Vedanta owns 70.5% of the share capital of Vedanta Aluminium andSterlite owns the remaining 29.5% share capital of Vedanta Aluminium.Vedanta Aluminium produces ingots, billets & wire rods that are sold inthe markets around the World.

9. Madras Aluminium Company Ltd.:MALCO is headquartered in Mettur, India.MALCO’s equity shares are listed and traded on the NSE and BSE.They own 93.9% of MALCO’s share capital and have managementcontrol of the company.

10. Iron oreSesa Goa Limited:Sesa Goa is headquartered in Panaji, India, and its equity shares arelisted and traded on the NSE and BSE.Vedanta owns 57.1% of Sesa and have management control of thecompany.

11. Commercial power generation businessSterlite Energy Limited:Sterlite Energy is headquartered in Mumbai.Sterlite owns 100.0% of Sterlite Energy and has management control ofthe company.

12. Dividend History

13. Company is planning to merge Sterlite Industries into Sesa Goa to forma new entity Sesa SterliteSterlite Industires will be absorbed by Sesa Goa for a swap ratio of 3:5i.e. 3 shares of Sesa Goa for every 5 shares held in Sterlite industryThe new holding firm will own controlling stake in all of Vedanta’scompanies in IndiaIt will create 7th largest resources major globally

14. The merger brings together all Indian and some overseas assets intosingle entityValuation for the merger is done by KPMG and Grand ThorntonMerger will bring synergy of Rs 1000 crore annually through reductionof cross shareholding, simplification of structure and tax gainsParent Vedanta’s debt will shrink by almost 61% to $3.8 billion and debtservice liability will be reduced by $300 million for year endingMarch 31, 2013

15. The biggest concern for investors is the consolidated debt of aboutRs.68600 crore which would prove to be the burden for the new entity,while Vedanta Resources will be the runaway beneficiaryThe merger will bring in recently acquired Cairn India and also lossmaking subsidiary Vedanta Aluminum and Madras Aluminum.The transfer of the entire shareholding of 58.9% of Cairn India intoSesaSterlite wil also carry associated debt of $5.9 billion on the books ofnew entity

16. “This merger ratio appears to be slightly in favour of Sterlite shareholders anddetrimental to Sesa Goa shareholders. It will benefit Vedanta resources as thehoding company can pass on Vedanta Aluminum onto Sesa Sterlite” -Jagannadham Thunuguntla SMC Global strategist

17. This is one of the reasons that the institutional shareholders in SesaGoa have opposed the merger plan

18. Source:www.vedantaresources.com www.en.wikipedia.org Economic Times Thank You
Les LT vaincront !