The company in its effort to raise the cash can sell stake in its energy unit, according to Bloomberg news services.
In a filing of GVK Power & Infrastructure (GVKPIL), the listed arm of the group, the company stated that it will avail all possible avenues to raise the fund for Australia acquisition including pledging of subsidiary shares, issue fixed deposits and provide undertakings in relation to acquisition financing by GVK Coal developers (GVKCD).
GV Sanjay Reddy, vice chairman of GVK Power & Infrastructure, said to the news agency that the group plans to sell the stake in GVK Coal Developers in three to six months. GVK Group focus on infrastructure companies in India.
GVK Coal is buying 79% stake in Alpha and Alpha West projects along with the rail and port projects connecting the coal deposits to Abbot Point in Australia"s Queensland state.
As reported by the media, GVK will pay $500 million on completion of the transaction is completed. It will pay an additional $560 million once the financial aspect of the project is closed, expected in 2012.
The company has stated in statement that it has tied up with banks for funding if the acquisitions but it did not disclose the name.
Based on the announcement it seems that the group will not be increasing the debt level of GVK Power & Infrastructure.
GVK Power & Infrastructure saw its share price decrease by almost 58% after news reports stated in January that the infrastructure company could purchase the assets.
VIEW: The company's trend on daily chart is downward for the last one year. On the Stochastic Oscillator, the stock is in the oversold territory. If the stock starts to gain on daily chart then it should be bought into.
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