Hindustan Zinc’s plan to split firm rejected by govt

PTI

New Delhi, March 22

The Ministry of Mines has rejected a proposal by Vedanta group’s firm Hindustan Zinc Ltd to split the company into different entities, a top official on Friday said.

The government is the largest minority shareholder in Hindustan Zinc, owning a 29.54 per cent stake in the company. “We have not agreed to the proposal,” Mines Secretary VL Kantha Rao told reporters on the sidelines of a function here.

Hindustan Zinc had earlier announced its plans of spinning off business into separate entities, including zinc and silver, to increase its market capitalisation.

When asked about the reason for the rejection of the proposal, the Secretary said: “Whatever report we have in front of us we are not convinced as a shareholder.”

Hindustan Zinc had earlier said it had engaged a leading advisory firm to study its plans to spin off the business. Earlier, Hindustan Zinc had said the company’s board has decided to undertake a “comprehensive review of its corporate structure for unlocking potential value”.