Sterlite Industries (India) Limited Announcement Regarding Change in Equity to ADS Ratio
May 25 2010 - 9:15AM
Business Wire
On April 26, 2010, Sterlite Industries (India) Limited (the
“Company”) announced that the Board of Directors of the Company
has, subject to the approval of the Shareholders, recommended:
- a dividend of Rs. 3.75 per
equity share, par value Rs. 2 per equity share (the “Rs. 2
Shares”),
- a split of each of the Company’s
Rs. 2 Shares into two equity shares, par value Re. 1 per equity
share (the “Re. 1 Shares”), and
- a bonus issue of the Company’s
Re. 1 Shares (sub-divided) in the ratio of 1:1,
The Company expects that dividend payments to holders of its
American Depositary Shares (“ADSs”) shall be made in accordance
with the terms of the Company’s Deposit Agreement (the “Deposit
Agreement”) by and among the Company, Citibank N.A., as depositary
(the “Depositary”) and the holders and beneficial owners of the
Company’s ADSs issued thereunder. The payment of dividend is
expected by June 16, 2010.
Following the stock split and bonus issue, each Rs. 2 Share held
by a shareholder of the Company on the applicable record date will
automatically convert into four Re. 1 Shares. On May 24, 2010, the
Company notified the Depositary that the Company intends to give
effect to the bonus issue and stock split by changing its
ADS-to-equity share ratio such that following the distribution of
equity shares in connection with the bonus issue and stock split,
each ADS would represent four Re. 1 Shares. Each of the Company’s
ADSs currently represents one Rs. 2 Share. As a result of the
change of its ADS-to-equity share ratio, the Company does not
intend to issue additional ADSs or split its ADSs in connection
with the bonus issue and stock split.
The Company intends to announce the record and effective date
for the bonus issue and stock split following the Annual General
Meeting of the Company’s shareholders to be held on June 11,
2010.
In October 2009, the Company issued US$500 million in aggregate
principal amount of 4.00% Convertible Senior Notes Due 2014 (the
“Notes”). The Company does not expect that the conversion rate of
the outstanding Notes will be required to be adjusted as a result
of the dividend, bonus issue or stock split, except that if the
bonus issue and stock split are approved by the shareholders, then
with effect from the effective date of the bonus issue and stock
split, the Notes will become convertible into ADSs, each of which
will represent four Re. 1 shares.
About Sterlite
Sterlite is one of India’s largest non-ferrous metals and mining
companies with interests and operations in aluminum, copper and
zinc and lead. It is a subsidiary of Vedanta Resources plc, a
London-based diversified FTSE 100 metals and mining group.
Sterlite’s main operating subsidiaries are Hindustan Zinc
Limited for its zinc and lead operations; Copper Mines of Tasmania
Pty Limited for its copper operations in Australia; and Bharat
Aluminium Company Limited for its aluminium operations. The company
operates its own copper operations in India. The company has
entered the commercial energy generation business and is in the
process of constructing a 2,400MW independent power plant through
its wholly owned subsidiary, Sterlite Energy Limited.
Sterlite is listed on the Bombay Stock Exchange under the code
“500900”, the National Stock Exchange in India under the symbol
“STER” and the New York Stock Exchange in the United States in the
form of ADSs, each representing one ordinary share, under the
symbol “SLT”. For more information, please visit
www.sterlite-industries.com. The principal executive office of
Sterlite Industries (India) Limited is located at Vedanta, 75 Nehru
Road, Vile Parle (East), Mumbai, Maharashtra 400-099, India.
About this Press Release; Forward-Looking Statements
This press release is for informational purposes only and shall
not constitute an offer to sell or the solicitation of an offer to
buy securities, nor shall there be any sale of Sterlite’s
securities in any jurisdiction, including the United States, in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of such
jurisdiction.
This press release contains “forward-looking statements”
relating to the proposed bonus issue and stock split. These
forward-looking statements are subject to a variety of factors. You
should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
Other than as required under applicable securities laws, Sterlite
does not undertake to update these forward-looking statements.
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