Vedanta acquires 24.5 % stake in L&T’s Raykal Aluminium

Vedanta Aluminium (VAL), a subsidiary of London-listed Vedanta Resources, has acquired 24.5-per cent stake in diversified conglomerate Larsen and Toubro's (L&T) unit Raykal Aluminium, for Rs200.70 crore ($36 million).

In a Securities and Exchange Commission (SEC) filing, Sterlite Industries, the Indian flagship of Anil Agarwal's Vedanta Resources, said that VAL has acquired 24.5-per cent stake in Raykal and has the right to acquire the entire 100 per cent over a period of time for Rs1,811 crore, subject to certain milestones being achieved.

Sterlite holds 29.5 per cent stake in VAL.

The filing submitted on 31 May, revealed that the deal was signed on 23 February, two days before Vedanta Resources announced the restructuring of its Indian operations.

In 1993, L&T had teamed up with Dubai Aluminium Company (Dubal) and formed a special purpose vehicle Raykal to mine for bauxite, which was to be used by Raykal for its proposed alumina refinery and smelter project in the state.

But the project did not take off and Dubal opted out of the venture.