Company CEO Arun Mishra gave the latest update
Hindustan Zinc Limited, a subsidiary of Vedanta Group, has held fresh talks with the government on the proposal to split the company into two parts. Earlier, there was a proposal to split the company into three parts. Hindustan Zinc CEO Arun Mishra said on Wednesday that the company’s restructuring plan to create a separate unit was put on hold because the government opposed the bid. Let us tell you that the central government has a 29.54 percent stake in this giant mining company.
Ministry’s approval is necessary for any restructuring of business operations
CEO Arun Mishra said that the talks with the government regarding the division of Hindustan Zinc were very good. Arun Mishra said, “So now the government will come back to the discussion of division. Yes, we have discussed again. Now there will be two parts instead of three parts.” The Ministry of Mines had earlier written a letter to the company informing it that the approval of the ministry would be required for any restructuring of the business operation.
The CEO met the Mines Secretary
Hindustan Zinc CEO said that he had recently met the Mines Secretary and both the government and Hindustan Zinc are discussing this issue which is a “big” issue. Arun Mishra said, “This is a big issue. This requires restructuring of assets including mines, smelters.” He said that Hindustan Zinc wants to make both the companies asset based, “In such a situation, assets mean that mines, smelter plants will have to be separated.”
The split was announced last year to increase the company’s market cap
Arun Mishra said, “Even if we separate, there is no mine that produces only silver. There are also no mines that produce only zinc and lead. So there will be talks between the two. So these are all complex issues that are being discussed.” Let us tell you that Hindustan Zinc had announced plans to split its business into different units last year to increase its market cap.
With PTI inputs
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