22 March 2011
Vedanta Resources Plc
Sesa Goa announces the Acquisition of Assets of Bellary Steel & Alloys Limited
Vedanta Resources plc's subsidiary, Sesa Goa Limited ("Sesa Goa") announced the acquisition of Assets of Bellary Steel & Alloys Limited. The full text of the release issued by Sesa Goa is set out below.
Sesa Goa Limited
Announces the Acquisition of Assets of Bellary Steel & Alloys Limited
Goa, 22 March 2011: Sesa Goa Limited ("SGL" or the "Company") announces that it has acquired the assets of the upcoming Steel Plant Unit of Bellary Steel & Alloys Limited ("BSAL") for an all cash consideration of ` 220.00 Crore.
The secured creditors to BSAL represented by IFCI Ltd had taken over possession of the properties of BSAL in association with the official liquidator. IFCI Ltd then conducted a sale process for the assets of BSAL under the SARFAESI Act, 2002.
BSAL was in the process of putting up a 0.5 mtpa Steel Plant Project at Bellary. The properties of the under construction plant acquired are free hold land of ~700 acres, building and structures, plant and machinery and other assets of the Steel Plant. The Assets have been transferred on an "As is where is" Basis to SGL as of 22 March 2011.
The Company is presently conducting a detailed assessment in order to determine the best way forward for commissioning the steel plant at the earliest.
― Located in iron ore rich belt in the State of Karnataka.
― This asset provides the Company with an exceptional opportunity to expeditiously set up a
value addition facility, with approx. 700 acres of freehold land.
― The project is in close proximity of national highway, railway and source of water
"We have been looking at setting up value addition facilities, as desired by the State Government, and this acquisition provides us with an excellent opportunity to leap frog ahead in that direction. This acquisition also substantiates our firm commitment towards Karnataka." said Mr Mukherjee, Managing Director, Sesa Goa Limited.
For further information, please contact:
Sesa is India's largest producer and exporter of iron ore in the private sector. The company is a majority owned and controlled subsidiary of Vedanta Resources plc, the London listed FTSE 100 diversified metals and mining major. For over five decades, Sesa has been involved in iron ore mining, beneficiation and exports. Over the last two decades, it has diversified into the manufacture of pig iron and metallurgical coke. Sesa has mining operations in Goa and Karnataka while it also operates a 280,000 TPY metallurgical coke plant and a 250,000 TPY pig iron plant in Goa. The Company acquired the shares of Sesa Resources Limited (VSD), which in turn holds 100% equity shares of Sesa Mining Corp. Pvt. Ltd (DMC) during FY '10.
This press release contains "forward-looking statements" - that is, statements related to future, not past, events and may be interpreted as 'forward looking statements' within the meaning of applicable laws and regulations. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the company's operations include a downtrend in the steel, pig iron & met coke industry - global or domestic or both, significant changes in political, economic, business, competitive or regulatory environment in India or key markets
For further information, please contact:
Senior Vice President - Investor Relations
Vedanta Resources plc
+ 91 22 6646 1531
Tel: +44 20 7251 3801
About Vedanta Resources plc
Vedanta Resources plc ("Vedanta") is a London listed FTSE 100 diversified metals and mining major. The group produces aluminium, copper, zinc, lead, iron ore and commercial energy. Vedanta has operations in India, Zambia and Australia and a strong organic growth pipeline of projects. With an empowered talent pool of 29,000 employees globally, Vedanta places strong emphasis on partnering with all its stakeholders based on the core values of entrepreneurship, excellence, trust, inclusiveness and growth. For more information visit www.vedantaresources.com
This press release contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.