Vedanta Resources PLC VED

DJ Vedanta Offers INR160 Bln To Buy India Govt's Hindustan Zinc, Bharat Aluminium Stakes

NEW DELHI (Dow Jones)--India-focused miner Vedanta Resources PLC (VED.LN) Friday confirmed that it has offered INR160 billion ($3.2 billion) to buy the government's stakes in Hindustan Zinc Ltd. (500188.BY) and the erstwhile Bharat Aluminium Co.

"They have asked for the offer. We have given them the offer, but haven't heard back from the government. Vedanta also has to arrange so much of funds, so we are not sure where the matter is at the moment," Vedanta Chairman Anil Agarwal told reporters outside the gates of the federal oil ministry.

Bharat Aluminium is now part of Sterlite Industries Ltd. (500900.BY), which is majority-owned by Vedanta.

The federal government holds a 29.54% stake in Hindustan Zinc and 49% in Balco.

Agarwal said Vedanta Resources also plans to increase the output of Cairn India's oil block in the state of Rajasthan to 240,000 barrels a day shortly from 150,000 barrels/day at present.

Vedanta Resources recently completed the acquisition of a majority stake in Cairn India.

Chairman Agarwal's comments confirm a media report saying Vedanta has offered INR160 billion for the stakes.

--By Rakesh Sharma, Dow Jones Newswires; 91-11-4356-3358; prasenjit.bhattacharya@dowjones.com

(END) Dow Jones Newswires

March 02, 2012 05:52 ET (10:52 GMT)

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