Hindustan Zinc proposes to create separate entities as part of restructuring

New Delhi, Sep 29 (IANS) The Board of Directors of Hindustan Zinc have decided that considering the scale, nature, and potential opportunities for various business verticals of the Company, the Company should undertake a comprehensive review of its corporate structure for unlocking potential value.

Subject to a detailed evaluation, the idea is to create separate legal entities for undertaking the Zinc & Lead, Silver, and Recycling business of the Company.

To this end, the Board of Directors have authorised a committee of directors to evaluate and recommend such options and alternatives to the Board of Directors.

The strategic objectives outlined by the Board of Directors for undertaking such an exercise are unlocking value for all stakeholders, creation of businesses which are positioned to better capitalize on their distinct market positions, deliver long-term growth, distinct investment profiles to attract deeper and broader investor bases, accelerate towards sustainability goals focused on waste to wealth, emissions reduction and strong ESG practices, appropriate capital structure and capital allocation policies based on business specific dynamics, sharpen focus on core competencies and appropriate realignment of the Company’s resources.

The management will appoint the external advisors to assist in evaluating the options and together will update the way forward to the Board of Directors.