Mumbai, Aug 11 (Inditop.com) Sterlite Industries, a leading metals major and part of Anil Agarwal’s Vedanta Group, has revised its offer to purchase the assets of Asarco, the Texas-based bankrupt miner, smelter and copper refiner.
The company has now proposed to pay $1.59 billion in cash in view of the increase in global copper prices and $208 million in the form of copper price participation note – money paid to smelters when prices exceed certain value.
“The consideration was changed to reflect an increase in copper prices and to meet the expectations of creditors,” Sterlite said in a regulatory filing with the Bombay Stock Exchange Tuesday.
The value of the participation note has been lowered from $770 million to $208 million, and the same has been compensated for by higher cash consideration of $1.59 billion, said the company.
Sterlite will also benefit from the proceeds recovered from general unsecured creditors based on a judgement against the Americas Mining Corp awarded by the District Court of Texas.
The quantum of such benefit is pegged at 50 percent of the interest and will accrue once the unsecured creditors are paid in full, including the post-petition interest, the company added.
Formerly the American Smelting and Refining Co, Asarco was formed in 1899 after the consolidation of a number of silver smelting companies. Over the years, it has evolved into an integrated producer of copper, and other metals.
