Processing .....please wait.. 
The article has been forwarded.... 
Sterlite eyes majority stake in Hindustan Zinc
By siliconindia staff writer
|
Thursday, 09 October 2003, 19:30 IST
NEW DELHI: In a bid to acquire majority stake in Hindustan Zinc (HZL) following its privatisation last year, Sterlite Industries has approached the Government seeking to buy additional equity in the company.
The deal is expected to fetch the Government around Rs 300 crore, sources said.
Anil Aggarwal-promoted Sterlite Group, which assumed management control over the zinc major last April, has told the Government it was interested in acquiring additional 18 per cent stake from the latter, sources associated with disinvestment process said.
If the deal goes through Sterlite Industries would increase its holding to well over 60 per cent.
The group acquired 26 per cent from Government while an open offer following from the deal resulted in the company also buying an additional 20 per cent stake taking its tally to 46 per cent.
Under the terms of the share holders agreement (SHA), the joint venture partner has the right to exercise the call option after the expiry of 18 month period from the close of the deal. The option would enable the partner to hike its stake in the company.
Government has sold its 26 per cent stake to Sterlite for a consideration of Rs 445 crore along with management control and it currently holds 48 per cent equity.
HZL deal followed the controversial decision by government to sell 51 per cent stake in aluminium major Balco to same group in 2001.