Sterlite to raise $2 billion for buyouts,

15 May 2007

Mumbai: Vedanta Resources group firm Sterlite Industries will raise $2 billion through issue of American depository shares (ADS) to finance its buyouts, subsidiary stake hikes and for setting up of a power plant.

"We intend to use the net proceeds from this offering for general corporate purposes, including capital expenditures and working capital, reduction of debt and for possible acquisitions of complementary businesses and consolidation of the ownership of our subsidiaries,'''' Sterlite Industries said in a filing with the US Securities and Exchange Commission.

The ADS would be listed on the New York Stock Exchange under the symbol ''SLT'' and the price to the public per ADS may not be less than Rs531.84 ($13.11).

The company is planning to acquire the remaining 29.5 per cent Indian government stake in Hindustan Zinc Ltd, which would amount to around Rs9,227.3 crore ($2,273.9 million) through the proceeds of this offering.

Sterlite could also enter the commercial power generation business in India by building the first phase, totalling 2,400 MW, of thermal coal-based power facility in Orissa for around Rs8,730.5 crore over four years, it said in the filing.

Sterlite has built six of its seven power plants that can generate a total 1,046 megawatts.