September 08, 2008

Sterlite may buy additional 26% stake in Hindustan Zinc

It is reported that Vedanta Group’s subsidiary Sterlite Industries India may raise its stake in Hindustan Zinc by another 29% from the current 65% stake in order to strengthen its control.

Mr Dhanpal Jhaveri spokesman of Vedanta said that “It has indicated our intention to buy the stake but have yet to decide a date.’’ He added that Sterlite is awaiting details from mediators on purchasing a stake in Bharat Aluminum. Sterlite, 68% owned by Vedanta, bought 51% of Bharat Aluminum in 2001.

Mr Sanjay Makhija VP at Mumbai based Fortune Financial Services said that “Sterlite may not have to pay a huge premium as zinc prices have fallen sharply in the recent months."