Sterlite Industries Limited, a subsidiary of Vedanta Resources plc (VED.L) announced Monday that it signed a new agreement with ASARCO LLC for the purchase of substantially all the operating assets of Asarco.
The purchase consideration comprises of a cash payment of US$1.1 billion and a senior secured non-interest bearing promissory note for US$600 million payable over a period of nine years. The amount of $600 million is payable as $20 million per year from the end of second year for a period of seven years and terminal payment of $460 million at the end of the ninth year.
For the year ended 31 December 2008, the Tucson-based mining, smelting and refining company Asarco had total revenues of nearly US$ 1.9 billion and profit before tax of US$ 393 million.
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