Stake sales news 'baseless,' says Vedanta

NEW DELHI: Vedanta Limited, an Indian multinational mining company, on Thursday stated talks of sale in the oil-to-metals conglomerate to be "untrue and baseless."

This comes in the wake of a news report which said that mining mogul Anil Agarwal is contemplating a stake sale in Vedanta as a last-resort option and is examining the possibility of selling less than 5 per cent of the company.

The media report said that Agarwal will consider selling if other fundraising options fail.

Vedanta Resources which is a majority shareholder of Vedanta Ltd has been looking to reduce its debt through the sale of its zinc assets for a cash consideration of USD 2,981 million to Hindustan Zinc Ltd (HZL).

However, the government which holds a 29.54 per cent stake in Hindustan Zinc has sternly opposed this move.

Vedanta holds 64.92 per cent of the equity share capital of HZL.

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Vedanta Resources had earlier said that it has enough means to meet debt repayment liabilities in the coming quarters, as it looked to assuage investor concerns about its financial position.

In a statement, the firm, which is the majority owner of the Mumbai-listed mining and oil and gas company Vedanta Ltd, had said it is in the advanced stage of finalisation to tie up USD 1.75 billion through a combination of syndicate loan and bilateral bank facilities.

Vedanta Resources had said it has pre-paid all of its debt that was due for repayment till March 2023, deleveraging by USD 2 billion in the past 11 months.

Further, it is confident of meeting its liquidity requirements for the quarter ending June 2023.

Vedanta Resources had recently said that it has fully repaid the 250 million dollar loan it had taken from Barclays Bank and Standard Chartered Bank.