Agarwal: New role
New Delhi, Aug. 18 (PTI): A day after Vedanta Group firms Sesa Goa and Sterlite Industries merged to create Sesa Sterlite, the company today said the group’s chairman Anil Agarwal will head the new entity.
“Anil Agarwal, Navin Agarwal and M.S. Mehta have been appointed as chairman, executive vice-chairman and chief executive officer, respectively, for Sesa Sterlite,” Vedanta said in a statement today.
The statement said the group consolidation and simplification had received all the necessary approvals and, thereby, the merger of its subsidiaries Sesa Goa and Sterlite Industries had become effective, thus creating Sesa Sterlite.
“The consolidation will create the world’s seventh largest global diversified natural resources major... ranked by EBITDA (earnings before interest, tax, depreciation and amortisation) for the 12 months ended December 2012 from public filings and pro-forma EBITDA for the 12 months ended March 2013 for Sesa Sterlite, with a world-class, low-cost asset base in close proximity to high growth markets,” it said.
Increased diversification is expected to reduce volatility of earnings through commodity cycles, lowering the cost of capital and enhancing value.
Sesa Sterlite will have exposure to zinc-lead-silver, iron ore, oil and gas, copper, aluminium and commercial power, with assets located in India, Australia, Liberia, South Africa, Namibia, Ireland and Sri Lanka.
This asset base will benefit from the previously announced capex programme that has largely been invested.
The company said the consolidation would result in significant operational, capital and corporate synergies and would be earnings accretive to all shareholders.
“In the financial year ended March 31, on a consolidated basis, Sesa Sterlite will have generated a revenue of Rs 71,780 crore ($13.2 billion) and EBITDA of Rs 25,232 crore ($4.6 billion) with a strong balance sheet having cash and liquid investments of Rs 42,060 crore ($7.7 billion) and a net debt/EBITDA of 1.4 times,” it said.
The group firms Sesa Goa and Sterlite Industries had yesterday announced that their merger scheme, together with several other group firms, had now become effective, a development which came within a week of a final approval for the merger from the Goa bench of the Bombay high court.