GVK Power to buy 2 Australian mines

Posted By: Religare
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GVK Power to buy 2 Australian mines
On Thursday reports came in stating that Indian firm GVK Power & Infrastructure is interested in buying an Australian firm, Hancock Prospecting"stwo coal mines (Alpha Coal and Kevin's Corner mines).Although the company"s spokesperson did not divulge any information.

According to unknown sources close to the deal, the GV Krishna Reddy owned company would be shelling out around $1.5 billion for the deal, with the balance to be compensated in the subsequent years.

A report from a leading new agency today stated that people close to the matter have reportedly said that in order to finance the mines, GVK is in mulling to borrow around $850 million. According to sources, the investors in the loop are investors, include 3i Group and Actis.

Out the $850 million, GVK will allocate $500 million toward paying Hancock for equity in the mines and the remaining amount as reimbursement for costs incurred by the Australian firmfor operating the mines.

GVK is looking at foreign coal supplies to aid in providing fuel for its domestic power plants in India. Currently on the Bombay Stock Exchange (BSE), stocks of the firm are trading at Rs. 22.45down by 0.44 per cent or by Rs. 0.10. So far the stock has seen an intraday high of Rs.22.60 and a low of Rs. 22.05. (14:01 P.M IST)

Read more about: bse, nse, gvk power and infrastructure
Story first published: Friday, May 20, 2011, 9:31 [IST]
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