New Delhi, Jan. 27
Responding to the arbitration panel's ruling that struck down Sterlite Industries' call option to acquire the remaining 49 per cent stake in Bharat Aluminium Company (Balco), the Vedanta Group company said: “it is considering the next course of action.”
Tracking the ruling, which is seen as a setback, the Sterlite Industries scrip shed 5.28 per cent to close at Rs 169.45 on the BSE on Thursday.
The three member arbitration panel on January 25 had ruled against Sterlite Industries' move to exercise call option to acquire the remaining 49 per cent stake in Balco. This it said was in violation of the Section 111 A (2) of the Indian Companies Act, 1956, which pertains to the transfer of shares.
Sterlite Industries had acquired a 51 per cent stake in Balco in 2001 for Rs 551 crore. As part of the deal, Sterlite was given a call option to acquire the remaining stake in three years.
However, when Sterlite decided to exercise the option, differences cropped up over valuation and the dispute went to arbitration.