Vedanta, a company promoted by Anil Agarwal, announced that it would sell Zinc International
assets to Hindustan Zinc for USD 2,981 million in cash. The sale of the Zinc International assets held
by THL Zinc Ventures Ltd (Mauritius) (THLZV), a direct wholly-owned subsidiary of the mining and
metals giant Vedanta, was approved by the company’s board.
According to a filing by Vedanta, the assets held by THLZV through THL Zinc Ltd (Mauritius), which
include shares in Black Mountain Mining Pty Ltd in South Africa (of which it owns 69.6%) and THL
Zinc Namibia Holdings (Pty) Ltd in Namibia (of which it owns 100%), will be sold to the proposed
wholly-owned subsidiary (SPV) of Hindustan Zinc Ltd (HZL) for a cash consideration not exceeding
USD 2,981 million. 64.92% of the equity share capital of HZL is owned by Vedanta.
The proposed deal will depend on getting the required regulatory approvals. The transaction will
likely be finalised over the course of 18 months in stages, provided that all necessary regulatory
permissions are received in a timely way. The proposed merger will generate significant synergies for
both THLZ and HZL, unlock value, and capitalise on the aforementioned zinc assets. Hindustan Zinc is
nation’s integrated producer of zinc, lead, and silver.