Vedanta Resources snaps Mitsui's 51% stake in Sesa Goa

Sesa Goa Ltd has announced that "we have been informed by Earlyguard Ltd, a wholly owned subsidiary of Mitsui & Co., Ltd., that on April 23, 2007 Earlyguard Ltd sold its stake in Finsider International Company Ltd. (headquartered in the UK), which holds 51% of the issued shares of Sesa Goa Ltd, to Richter Holding Ltd and Westglobe Ltd, both wholly owned subsidiaries of Vedanta Resources plc (headquartered in the UK, listed on the London Stock Exchange)."

- Mitsui & Company Ltd ("Mitsui") announced that it has signed an agreement with Vedanta Resources plc (headquartered in the UK, listed in London Stock Exchange), a diversified and integrated metals and mining group whose principal operations are located in India, and soled out 100% of its issued shares of Finsider International Company Ltd (headquartered in the UK) for approximately US$981 million in cash. Finsider International Company Ltd holds 51% of issued shares of an Indian iron ore mining Company Sesa Goa Ltd (headquartered in Goa, listed in Indian National Stock Exchange and Bombay Stock Exchange). The after-tax proceeds from this transaction shall be approximately Yen 50 billion.

This transaction is in line with Mitsui's corporate strategy under the current Medium-term Management Outlook, in which Mitsui has been reviewing its portfolio to create shareholder value.

Iron ore business is one of Mitsui's core businesses and this status remains unchanged.

The stock was trading at Rs.1724.85, down by Rs.17.45 or 1%. The stock hit an intraday high of Rs.1900 and low of Rs.1668. The total traded quantity was 366887 compared to 2 week average of 142566.

Source : Equity Bulls

Keywords