Vedanta's subsidiary, Malco Energy Ltd, has established a new unit in Saudi Arabia dedicated to the copper business, with an investment of 100,000 Saudi riyals (approximately Rs 22.19 lakh). In a filing to BSE, Vedanta, the metal and mining giant, stated, "Malco Energy Ltd, a wholly-owned subsidiary of the Company, has incorporated a new wholly-owned Subsidiary in the name of ‘Vedanta Copper International VCI Company Limited.'"
The newly formed Vedanta Copper International VCI Company Limited has been created with the aim of exploring growth opportunities in new geographical locations, according to the statement. This initiative aligns with Vedanta's broader strategy, as the company had previously announced plans to demerge five of its key businesses, including aluminum, oil and gas, and steel, into separate listed entities. The objective behind this strategic move is to enhance shareholder value.
Detailing the demerger plan, Vedanta clarified in a previous stock exchange filing that it would be a straightforward vertical split. For every one share of Vedanta Limited, shareholders would additionally receive one share of each of the five newly listed companies. The Board of Vedanta Ltd had approved this "pure-play, asset-owner business model," leading to the demerger and separate listing of aluminum, oil and gas, power, steel and ferrous materials, and base metals.
