Hindustan Zinc on Friday said that its board has authorised the Committee of Directors (CoD) to evaluate appropriate corporate restructuring exercise to unlock shareholder value. “The Board of Directors of the Company have decided that considering the scale, nature, and potential opportunities for various business verticals of the company, the company should undertake a comprehensive review of its corporate structure for unlocking potential value,” it said in a regulatory filing.
The idea behind the restructuring, it said, is to create separate legal entities for undertaking the zinc & lead, silver, and recycling business of the Company. “To this end, the Board of Directors have authorized a committee of directors to evaluate and recommend such options and alternatives to the Board of Directors,” it said.
Hindustan Zinc said that it will also appoint external advisers to evaluate plans for a potential restructuring.
The board of directors outlined strategic objectives for undertaking a restructuring exercise including unlocking value for shareholders by creation of businesses which are positioned to better capitalize on their distinct market positions and deliver long-term growth. The distinct investment profiled, the company said, will also attract deeper and broader investor bases. Besides, the restructuring will also aim to set up appropriate capital structure and capital allocation policies based on business specific dynamics. It will also sharpen focus on core competencies and appropriate realignment of the company’s resources.