Bloomberg reported that Vedanta Resources plc (LSE:VED) plans to raise its bids for Hindustan Zinc Ltd. (BSE:500188) and Bharat Aluminium Company Ltd. by 15 and 63 percent, respectively.
As quoted in the market news:
The London-listed mines and metals company had offered a combined $3.28 billion for the government’s 29.5 percent stake in Hindustan Zinc and 49 percent in Bharat Aluminium. Vedanta holds 65 percent in Hindustan Zinc and 51 percent in Bharat Aluminium through its Indian subsidiary and copper maker Sterlite Industries India Ltd. (STLT)
Higher ownership in these companies will give Vedanta greater autonomy in the operations and control of almost $3.3 billion cash reserve at Hindustan Zinc as on June 30. The transactions will help the Indian government raise funds to pay for subsidies on food, fuel and fertilizer and invest in social projects, including education and health.