Government opposes purchase of Vedanta’s zinc assets of Hindustan Zinc, shares fall

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Hindustan Zinc: The shares of Hindustan Zinc have come down to the lowest level of the month today and there is a big reason behind this. In fact, the central government has opposed Hindustan Zinc’s plan to buy Vedanta’s zinc assets. Hindustan Zinc is in the process of buying zinc assets of Vedanta Limited for $ 2.98 billion (Rs 24,649 crore). The central government believes that there is doubt on the valuation of this deal.

The government has said that it will explore legal options for the proposed deal. The government has asked Hindustan Zinc to find some other way to buy Vedanta’s zinc assets and work on a cashless mode.

Differences have come to the fore regarding this deal earlier also when the company said that it plans to hold discussions with the country’s Ministry of Mines to resolve the differences. Since the government had raised several concerns regarding the valuation of Vedanta’s zinc assets. These differences have mainly come to the fore from the directors appointed by the government, whose names are Farida Naik, Veena Kumari Dermal and Nirupama Kotru.

Serious concerns have been raised by the government regarding the liquidity of Vedanta Resources, the parent company of Vedanta Group’s zinc assets located in South Africa and Namibia. Financial experts say that on the basis of valuation, this deal is not in the interest of the majority shareholders of Hindustan Zinc. It is worth noting that the central government has 30 percent stake in Hindustan Zinc and Vedanta has about 65 percent stake in this company.

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At what price are the shares of Hindustan Zinc

Today at 1:45 pm, the share of Hindustan Zinc was trading at Rs 321.80 per share, down by Rs 2.15 or 0.66 per cent.

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