Sesa Sterlite - HZ stake sale - easier with voluntary delisting? - Kotak

As per unauthenticated media reports, the Government will soon sell its HZ stake through an auction route. The buyout of HZ is critical to sort out cash flow fungibility issues but faces multiple implementation challenges. We believe the deal can be concluded by SSLT's active participation but will involve multiple steps, including an auction (in tranches), a probable open offer and a reverse book building - which essentially replicates an auction for the Government's final exit. Minority shareholders of HZ will likely gain on voluntary delisting. HZ acquisition will be positive for SSLT - improved liquidity will aid growth. We maintain ADD on SSLT/HZ.

Source : Equity Bulls

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