Anil Agarwal defends Vedanta Resources' plan to sell its global zinc assets

Anil Agarwal, Vedanta Resources Chairman

Anil Agarwal, the chairman of Vedanta Resources, has defended the company's plan to sell its global zinc assets and urged the Indian government to divest its stake in Hindustan Zinc Ltd (HZL).

In an interview with CNBC-TV18 on March 3, Agarwal warned that HZL's prospects would suffer without the deal and stated that he would not consider finding another buyer for Vedanta's international zinc assets.

He also expressed confidence in the company's ability to make bond payments, citing its strong internal accruals.

This comes after the government decided to oppose Vedanta's bid to sell its international zinc operation to HZL for a cash consideration of $2.98 billion. The government is a minority shareholder in HZL, holding close to a 30 percent stake.

He said Vedanta is on track to make $30 billion in revenue and a profit of $9 billion in the coming years.

In a setback to billionaire Anil Agarwal's mining group, the government has opposed Vedanta Ltd's proposal to sell its international zinc business to HZL for $2.98 billion over concerns about valuation.

The government has threatened to take legal action to stop the sale of the Africa-based assets to HZL, in which it holds a 29.54 percent stake.

In a letter to HZL, posted by the company to stock exchanges, the Ministry of Mines said the deal is a "related party transaction" and the government would "like to reiterate'' its dissent.

Vedanta holds a 64.92 percent equity share of HZL, which is an integrated producer of zinc, lead and silver.

Meanwhile, the government has also written to the capital market regulator Securities and Exchange Board of India (Sebi), opposing HZL board's move to buy Vedanta's global zinc business in a $2.98 billion cash deal, according to reports.