New structure will enhance shareholder value: Anil Agarwal

Billionaire Anil Agarwal's Vedanta (VED) Resources Plc will combine its publicly-listed Indian units in a new company, cutting debt after its USD 8.67 billion purchase of oil producer Cairn India Ltd.

Speaking to CNBC-TV18, Agarwal said, he felt it was unnecessary to have two holding companies. He says the new structure will enhance shareholder value. Sesa Goa, India's largest iron-ore exporter, will absorb Sterlite Industries in an all-share deal. Investors will get three Sesa Goa shares for five shares of Sterlite. Vedanta will transfer for USD 1 its 38.8% holding in Cairn India, including a debt of USD 5.9 billion, to Sesa Sterlite, the new company that will hold 58.9% of Cairn India.
"Creating two holding companies had created confusion in the shareholders