Vedanta's arm starts a copper business unit in Saudi Arabia
Vedanta's subsidiary, Malco Energy Ltd, has established a fresh division in Saudi Arabia focused on the copper business, investing 100,000 Saudi riyals (equivalent to Rs 22.19 lakh). Vedanta, in a statement to BSE, mentioned, Malco Energy Ltd, a wholly-owned subsidiary, has formed a new entirely-owned branch named 'Vedanta Copper International VCI Company Limited.'
Vedanta Copper International VCI Company Limited's incorporation aims to explore expansion prospects in fresh geographical areas, as stated by the company. Earlier, Vedanta had outlined plans to separate five core businesses, such as aluminum, oil and gas, and steel, into distinct listed entities to enhance shareholder value.
In a stock exchange filing, the company explained that the demerger would involve a straightforward vertical split. For every existing share of Vedanta Limited, shareholders would also receive one share in each of the five newly established companies. The Board of Vedanta Ltd had sanctioned a strategy focusing on a "pure-play, asset-owner business model." This approach involves the demerger and separate listing of businesses dealing with aluminum, oil and gas, power, steel and ferrous materials, and base metals.