Post on 13-Apr-2015
description
Merger of
Presented By Jerry DmelloWarren DiasLinus Pereira
Staynel Rodrigues
Nod For Sesa Goa And Sterlite Merger
• Sterlite shareholders will get three shares of Sesa Goa for every five shares held according to the swap ratio.
• Cairn India, Hindustan Zinc, Balco, Vedanta Aluminum, Madras Aluminum, Talwandi Sabo Power and Australian Copper Mines will become subsidiaries of Sesa Sterlite after the restructuring.
• Only Konkola copper mines of Zambia would stay out of the restructuring.
Cont………
• The merger will lead to Vedanta’s debt burden falling by about 61% to $3.8 billion (Rs 21,850 crores).
Its debt service liability will also come down to $180 million (Rs 1,035 crores) from the current $500 million (Rs 2,875 crores).
Earning Break Up
Long term future prospects
Sesa Sterlite – Delivering for India
Contributing to India's energy security 20% of India's domestic crude oil production
Fuelling India's growth story by providing access to metals domestically
80% of India's market share by sales volume for zinc
40% of India's aluminum, copper and lead consumption
One of the largest private sector contributors to the exchequer
Tax contribution to exchequer of c.INR 11,500 Crores ($2.5bn) in FY 2011 – 1.5% of country's total collection
Contributed 1.7% to country's total income tax collection
Raised c.INR 62,500 Crores ($12.5bn) capital overseas for investment in India
Environmental and social responsibility
Green energy: 273 MW wind power capacity (INR 1,500 Crores invested)
Educational, healthcare and community programmers covering 2.7m people across 548 villages
Earnings Accretive for Sesa Goa
Scale - Expected to be 7th largest diversified natural resources major globally.
Diversification - Reduces volatility of earnings while giving Sesa Goa exposure to world class assets and growth across different commodities.
Synergies - Share in up to c.INR 1,000 Crores p.a. of expected synergies.
Financial Strength - Strong balance sheet and lower cost of capital to deliver superior growth and returns
Accretive - Expected to be an earnings accretive transaction
Earnings Accretive for Sterlite
Scale - Expected to be 7thlargest
diversified natural resources major globally.
Diversification - Diversifies Sterlite, gaining
exposure to world class iron ore and oil and gas assets.
Synergies - Share in up to c.INR 1,000 Crores
($200m) p.a. of expected synergies
Financial Strength - Strong balance sheet and lower cost of capital to deliver superior
growth and returns
Accretive - Expected to be an earnings accretive transaction
Merger Impact On Stock Of Sesa Goa
Merger Impact On Stock Of Sterlite
Debt structure
• Jerry made your part here of sesa goa and sterlite industries debt structure put graphs and read info
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Transaction Approvals Indian regulatory
BSE and NSE
Competition Commission of India
High Courts in India and Supreme Court of Mauritius for interconditional scheme of arrangement
sesa Goa, Sterlite, VAL, MALCO and SEL shareholder approvals
The transfer of Vedanta's interest will require approval
from the Foreign Investment Promotion Board in India
UK regulatory
Vedanta shareholders as class 1 transaction under the UK Listing Rules