Sterlite and Unions reach agreement on terms Of collective bargaining agreement for Asarco Llc judge approves bid protections for Sterlite
Albuquerque, N.M. & Mumbai, India (BUSINESS WIRE) - The unions representing the workers of ASARCO LLC ("ASARCO"), and Sterlite Industries (India) Limited ("Sterlite") (NYSE:SLT), a subsidiary of Vedanta Resources plc and a party to an agreement to acquire substantially all assets of ASARCO, jointly announced today that they have reached agreement on the terms of the collective bargaining agreement that would go into effect once the proposed acquisition is approved by the bankruptcy court overseeing ASARCO's chapter 11 case.
"We regard our employees as a vitally important part of our business and are extremely happy to have concluded a mutually satisfactory agreement with ASARCO's representatives," said Anil Agarwal, Chairman of Sterlite. "We look forward to working with the unions and ASARCO's highly-skilled employees.Sterlite is also pleased that it has been granted bid protections by the bankruptcy judge, which represents another important milestone in the acquisition process.""The unions are pleased that an agreement has been reached with Sterlite.We believe that Sterlite, with its strong experience in the copper business, will strengthen ASARCO's operations for the long term benefit of all stakeholders, including its employees," said Terry Bonds, Chairman of the ASARCO Union Negotiating Committee.
The new collective bargaining agreement, which fully retains all existing worker benefits, contains terms that are designed to ensure that ASARCO's operations will be improved and made more competitive. There are also strong commitments to ensure that Sterlite invests in and operates all of ASARCO's existing operations. The parties have also agreed that the term of the current agreement expiring in 2010 will be extended by three years to 2013.
"This reflects the confidence and commitment of Sterlite and bodes well for the long term growth of ASARCO," expressed Mr Joseph Lapinsky, CEO & President of ASARCO.
In another development advancing Sterlite's proposed acquisition, the bankruptcy judge presiding over ASARCO's chapter?11 case approved the bid protections contemplated by the Purchase and Sale Agreement with ASARCO, which includes, among other things, a break-up fee of $52 million payable to Sterlite under certain circumstances.
ASARCO, which owns and operates copper mines, smelters, refineries and other related assets, filed for chapter 11 bankruptcy protection in 2005 before the United States Bankruptcy Court for the Southern District of Texas, Corpus Christi Division. The proposed sale of assets to Sterlite is part of a plan to bring the bankruptcy case to a close.
About Sterlite
Sterlite is India's largest non-ferrous metals and mining company 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 Aluminum Company Limited for its aluminum operations. The company operates its own copper operations in India. The company recently entered the commercial energy generation business and is in the process of setting up a 2,400MW independent power plant through its wholly owned subsidiary, Sterlite Energy Limited.
Sterlite Industries is listed on the Bombay Stock Exchange and National Stock Exchange in India and on the New York Stock Exchange in the United States. The company has been included in the recently launched S&P India?10 Index.
Disclaimer This presentation includes statements which may constitute forward looking statements made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995. Although Sterlite Industries believes that the expectations contained in such forward-looking statements are reasonable, it can give no assurance that such expectations
will prove correct. These statements may involve risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Such risks and uncertainties are more fully described in the section entitled "Risk Factors'' in our registration statement on Form F-1 and in other reports and periodic filings made from time to time with the Securities and Exchange Commission. These filings are available at www.sec.gov.
Sterlite Industries may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company.
Sterlite Industries (India) Limited Sumanth Cidambi, +91 22
6646 1531 Associate Director ? Investor
Relationssumanth.cidambi@vedanta.co.inSheetal Khanduja, +91 22
6646 1427 Manager ? Investor
RelationsSheetal.khanduja@vedanta.co.in
Albuquerque, N.M. & Mumbai, India (BUSINESS WIRE) - The unions representing the workers of ASARCO LLC ("ASARCO"), and Sterlite Industries (India) Limited ("Sterlite") (NYSE:SLT), a subsidiary of Vedanta Resources plc and a party to an agreement to acquire substantially all assets of ASARCO, jointly announced today that they have reached agreement on the terms of the collective bargaining agreement that would go into effect once the proposed acquisition is approved by the bankruptcy court overseeing ASARCO's chapter 11 case.
"We regard our employees as a vitally important part of our business and are extremely happy to have concluded a mutually satisfactory agreement with ASARCO's representatives," said Anil Agarwal, Chairman of Sterlite. "We look forward to working with the unions and ASARCO's highly-skilled employees.Sterlite is also pleased that it has been granted bid protections by the bankruptcy judge, which represents another important milestone in the acquisition process.""The unions are pleased that an agreement has been reached with Sterlite.We believe that Sterlite, with its strong experience in the copper business, will strengthen ASARCO's operations for the long term benefit of all stakeholders, including its employees," said Terry Bonds, Chairman of the ASARCO Union Negotiating Committee.
The new collective bargaining agreement, which fully retains all existing worker benefits, contains terms that are designed to ensure that ASARCO's operations will be improved and made more competitive. There are also strong commitments to ensure that Sterlite invests in and operates all of ASARCO's existing operations. The parties have also agreed that the term of the current agreement expiring in 2010 will be extended by three years to 2013.
"This reflects the confidence and commitment of Sterlite and bodes well for the long term growth of ASARCO," expressed Mr Joseph Lapinsky, CEO & President of ASARCO.
In another development advancing Sterlite's proposed acquisition, the bankruptcy judge presiding over ASARCO's chapter?11 case approved the bid protections contemplated by the Purchase and Sale Agreement with ASARCO, which includes, among other things, a break-up fee of $52 million payable to Sterlite under certain circumstances.
ASARCO, which owns and operates copper mines, smelters, refineries and other related assets, filed for chapter 11 bankruptcy protection in 2005 before the United States Bankruptcy Court for the Southern District of Texas, Corpus Christi Division. The proposed sale of assets to Sterlite is part of a plan to bring the bankruptcy case to a close.
About Sterlite
Sterlite is India's largest non-ferrous metals and mining company 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 Aluminum Company Limited for its aluminum operations. The company operates its own copper operations in India. The company recently entered the commercial energy generation business and is in the process of setting up a 2,400MW independent power plant through its wholly owned subsidiary, Sterlite Energy Limited.
Sterlite Industries is listed on the Bombay Stock Exchange and National Stock Exchange in India and on the New York Stock Exchange in the United States. The company has been included in the recently launched S&P India?10 Index.
Disclaimer This presentation includes statements which may constitute forward looking statements made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995. Although Sterlite Industries believes that the expectations contained in such forward-looking statements are reasonable, it can give no assurance that such expectations
will prove correct. These statements may involve risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Such risks and uncertainties are more fully described in the section entitled "Risk Factors'' in our registration statement on Form F-1 and in other reports and periodic filings made from time to time with the Securities and Exchange Commission. These filings are available at www.sec.gov.
Sterlite Industries may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company.
Sterlite Industries (India) Limited Sumanth Cidambi, +91 22
6646 1531 Associate Director ? Investor
Relationssumanth.cidambi@vedanta.co.inSheetal Khanduja, +91 22
6646 1427 Manager ? Investor
RelationsSheetal.khanduja@vedanta.co.in
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