India-based miner Vedanta Resources is set to begin a massive break up of its business by selling off its $20bn aluminium division.
While the company has not formally told the press of its plans, an announcement is expected early this week, sources told The Independent newspaper.
Vedanta‘s aluminium interests have a potential value of $20bn while the overall group is worth approximately $11bn.
The move is expected to be the first of a series of up to six divisions including zinc, iron ore and power, to be spun out of Vedanta over the next few years.
The Agarwal family, who owns the majority stake in Vedanta, is likely to retain the controlling interests in the demerged businesses.
While any timeline of the move has not been provided, talks are continuing over the potential demerger.
Vedanta’s Zambian copper business is expected to be the next business to be spun off.