Vedanta's Anil Agarwal urges Centre to divest remaining stake in HZL, says board has to run company, not govt

Vedanta chief Anil Agarwal beseeched the government to divest its remaining 29% stake in Hindustan Zinc as it had agreed to sell 100% stake 20 years ago.

He said that the government has to accelerate the process and it had agreed to divest the remaining stake to Vedanta under a particular formula.

Govt can probably make Rs 40,000-50,000 crore, Agarwal said.

He said that the company has to be run by the board and not by the government.

"Government has agreed that they will sell 100 percent share 20 years back. So how much will you hold our leg and not allow us to run? They have to take a decision to disinvest this 29 percent. The company has to be run by the board and not by the government," Agarwal told CNBC-TV18.

Agarwal said that he wants to double the size of Hindustan Zinc and that the South African assets are profitable one and will help HZL grow robustly.

"I have only one goal, and that is to double the size of Hindustan Zinc. If the government wants to come out of this, then they have to be bold to take a decision. They have announced that they are going to sell their share in the market in March, so I am looking forward to that. If the deal doesn’t happen Hindustan Zinc will start going down."

Two and two will make six, said Agarwal if the deal to acquire the international zinc assets by HZL goes through.

The Centre has opposed the deal by HZL to buy the international zinc assets of Vedanta.

Vedanta Limited on January 19 said its board has given a nod to the proposed sale for a cash consideration of $2,981 million.

"...considered and approved the proposed sale of its Zinc International assets held by THL Zinc Ventures Ltd (Mauritius), a direct wholly owned subsidiary of the company... to the proposed wholly owned subsidiary of Hindustan Zinc Limited, another listed subsidiary of the company, for a cash consideration not exceeding $2,981 million (in a phased manner basis agreed milestones)..." the company had said in a regulatory filing.

However, the government has opposed the deal stating that it's against the interest of minority shareholders and violates corporate governance norms.

Speaking to CNBC-TV18 on the issue earlier, Hindustan Zinc CEO Arun Misra said that the government is an important stakeholder and any board decision will need majority of minority shareholders nod.

He added that there are three months to convene shareholders’ meeting and seek approval and the board will eventually decide the next step if the deal doesn’t go through.