Vedanta group firms, Sesa Goa and Sterlite Industries on Saturday announced that their merger scheme, together with several other group firms, has become effective.
The development comes a week after receiving the final approval from the Goa bench of Bombay High Court.
In a joint statement, both the companies said that merger of Sterlite and Malco into Sesa Goa has become effective pursuant to the scheme of amalgamation and arrangement amongst Sterlite, Malco, Sterlite Energy, Vedanta Aluminium and Sesa Goa and their shareholders and creditors.
Accordingly, Malco's power plant has been transferred to Vedanta Aluminium, it further said, adding that August 28 has been fixed as the record date for allotting shares to the respective shareholders as per the merger scheme.
The merger, first announced on February 25, 2012, is aimed at creating a mega Indian natural resources giant, Sesa Sterlite, on the likes of BHP Billiton and Rio Tinto. It would also result in a Rs 1,000 crore annual saving for Vedanta through a reduction in debt-servicing cost as most of its debt gets transferred to the new entity.
“On Friday, we filed the necessary documents to Registrar of Companies (related to merger scheme). With that, the merger has become effective and it means Sterlite Industries no longer exists,” said Sesa Goa's Managing Director P K Mukherjee.