Vedanta demerger moves ahead as NCLT clears way for meetings of shareholders, creditors
Vedanta Ltd on Friday said the Mumbai bench of the NCLT has asked the company to call for a meeting of its secured and unsecured creditors and shareholders in the next 90 days to discuss the proposed demerger. The proposed demerger will create independent companies housing aluminium, oil and gas, power, steel and ferrous materials, and base metals businesses. The existing zinc and new incubated businesses will remain under Vedanta Ltd.
«A meeting of the equity shareholders… be convened and held within 90 days from the date of receipt of the order,» said a two-member bench of the National Company Law Tribunal (NCLT) comprising Technical Member Madhu Sinha and Judicial Member Reeta Kohli in its order dated November 21.
Vedanta Chairman Anil Agarwal had earlier said the proposed demerger of the company's diverse verticals that represent more than 15 commodities will see it progress from being asset managers to asset owners.
As the company passes through the transition phase, Vedanta is focusing on consolidating and strengthening its asset base to emerge as a world leader in each of its verticals, the chairman had said.
The diversified natural resources company had moved the NCLT seeking a demerger after receiving a nod from lenders and had expressed hopes of completing the process by the end of this fiscal year.
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