The Hindu : Business : Vedanta to acquire 51 p.c. stake in Zambian firm

Online edition of India's National Newspaper
Saturday, Aug 21, 2004

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Business

Vedanta to acquire 51 p.c. stake in Zambian firm

By Our Staff Correspondent

MUMBAI, AUG. 20. Vedanta Resources plc, the London-listed metals and mining group, has announced that it will acquire a 51 per cent controlling stake in Konkola Copper Mines plc (KCM) in Zambia for a total cash consideration of $48.2 million. The agreement is conditional on the approval of shareholders of Zambia Copper Investments Ltd. (ZCI) and it is expected to be completed by end October.

Vedanta holds interests in metals and mining in zinc, copper and aluminium operations in India and two copper mines in Australia. Its interests in India are through its two subsidiaries, Sterlite Industries and Madras Aluminium Company.

KCM is now owned by ZCI (58 per cent) and ZCCM Investments Holdings plc (42 per cent), a company listed on the Lusaka Stock Exchange, Zambia. ZCCM is itself owned by the Government of the Republic of Zambia (87.6 per cent ) and public shareholders (12.4 per cent). On completion of the transaction, Vedanta will subscribe to $25 million of new ordinary shares, representing 51 per cent of the enlarged issued share capital of KCM.

Anil Agarwal, Chief Executive, Vedanta, said, ``We have been negotiating with KCM shareholders and the Government of the Republic of Zambia for a considerable time and I am delighted that we have been able to structure a deal that brings benefits to all parties.

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