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Vedanta Receives $232mn Dividends from Hindustan Zinc; To Acquire Full Stake in Two Sister Concerns
July 10, 2023
Vedanta Ltd’s subsidiary Hindustan Zinc declared its first interim dividend payout in fiscal year 2024 totaling ~$358mn or INR 7/share. Of this, Vedanta which holds a 65% stake in the company, is expected to receive roughly $232mn in dividends. This is its lowest interim dividend payout in the last three years. This dividend payment is likely to aid Vedanta in meeting its coupon repayments of $152.2mn due between July 21 and September 11.
Separately, Vedanta also announced that it will acquire a 100% stake in two of its sister concern Twin Star Technologies’ subsidiaries last Friday. Twin Star Technologies is a wholly-owned subsidiary of Vedanta’s holding company, Volcan Investments. One of the subsidiaries is a JV with Foxconn set up last year to manufacture semiconductors in India, whereas the other is a display glass manufacturing venture. The acquisition will occur via share transfer at face value, and the transaction is expected to close during the ongoing quarter. The completion of this acquisition will mark Vedanta’s first venture into semiconductors and display glass manufacturing, further diversifying its portfolio.
Vedanta’s 8.95% 2025s have fallen by 4.3% since last week and are currently trading at 72.2 cents on the dollar.
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