With thanks to respective authors
There are multiple ways of buying stock in a business.
a) Buying a listed company business directly.
b) Buying stock of its holding company - typically not an exciting proposition
c) Buying a merger candidate where the merger is delayed/announced but awaiting regulatory clearances. Of course, this also leads to insider trading, arbitrage opportunities ,etc.
e.g. buying an interest in Balmer Lawrie is better achieved by stocking up on Balmer Lawrie Investment Ltd (listed only on BSE) but buying Bajaj holdings looks unappealing.
Just wanted to get an idea from people on this group if buying/holding Hindustan Zinc shares can be considered a way of buying into Sterlite given that Anil Agrawal is looking at buying out the residual stake of GoI and possibly merging /delisting it in the next year or two. The recent full page ads in the papers are for sure to build up case for buying out the residual stake of Government of India.
If the residual stake buyout happens in the next few months, the market may react positively on HZL and -vely on Sterlite or vice versa. It would depend on the price Sterlite offer GoI and as clarity emerges on how it would then take out the minority shareholders. Will it be a reverse-merger with Sterlite or a compulsory delisting is something I am thinking about for now. Any thoughts ?
I think that current valuations of both cos are expensive, sterlite more so than HZL but if somebody is betting on resources prices going up, Vedanta and all its group cos can be considered a proxy bet on that.
Disclosure: Long HZL
Also another News attached with it is
Be sure to read the comments
J Thomas
Vasan .KK
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Please use your discretion before acting on the ideas expressed in the group.
Happy Trading,
United we grow!!!
Happy Trading,
United we grow!!!
MARKETPLACE
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