Vedanta Resources said on Monday it would complete the acquisition of government?s remaining 49% stake in Bharat Aluminium Company (Balco) by the end of this financial year. London-listed Vedanta?s subsidiary Sterlite has 51% in Balco, which it bought from the government in 2001 for Rs 552 crore. The then government gave Sterlite the right to buy the remaining stake after a three-year period.
But when Sterlite tried to buy the government?s residual stake subsequently, differences arose between the government and Sterlite on the valuation. The matter finally culminated in arbitration by a bench of three retired Supreme Court judges.
?Arbitration process is concluded. Award is expected soon. By March, we hope to acquire government?s residual stake,? Vedanta Resources chairman Anil Agarwal told agencies in Mumbai.
The mining major said it is confident of buying government?s residual stake in another erstwhile public sector company Hindustan Zinc Ltd (HZL) as well.
?The Balco arbitration is about whether call option of is valid or not. If it is established (that the call option is valid) then it would be valid for Hindustan Zinc Ltd as well,? Agarwal added.
The Vedanta group had bought over 64% in Hindustan Zinc for over Rs 750 crore. The centre now has 49% stake in Balco and 29.5% in HZL.
The government now wants to sell the residual stake at a much higher price as it believes the strategic sale of equity in these companies was done earlier in ?haste.?
Mines minister B K Handique said recently that the disinvestment in Balco and Hindustan Zinc (HZL) was done in haste.
?I personally feel it needs to be priced higher,? he had said. government?s law officers too backed this view.