Within a week of receiving final approval from the Goa bench of the Bombay High Court, Vedanta group firms, Sesa Goa and Sterlite Industries announced that their merger scheme, together with several other group firms, has now become effective.
In a joint statement, both the companies said that merger of Sterlite and Malco into Sesa Goa has become effective pursuant to the scheme of amalgamation and arrangement amongst Sterlite, Malco, Sterlite Energy, Vedanta Aluminium and Sesa Goa and their shareholders and creditors.
As per the merger scheme, now Sesa Sterlite will be the holding company of all group firms of Vedanta other than Konkola Copper Mines (KCM) in Zambia.
Vedanta will hold 58.3% in Sesa Sterlite and 79.4% stake in KCM. The new company has total assets worth $36 billion (Rs 1,95,000 crore), net income of $1.9 billion (Rs 10,000 crore) and cash and liquid investments of $7.7 billion (Rs 42,000 crore) as of March, 2013.
It will also inherit almost 87% of Vedanta’s debt, which was $16.593 billion in March 2013, as loans taken to fund the Cairn India acquisition get transferred to Sesa Sterlite. Accordingly, Sesa Sterlite has a debt of $14.399 billion.
See http://timesofindia.indiatimes.com/business/india-business/Sesa-Goa-Sterlite-merger-becomes-effective/articleshow/21884322.cms.