GVK Power to buy Hancock coal mines for $2.4 billion

GVK Power and Infrastructure will buy two of Hancock Prospecting's thermal coal mines in Australia for around $2.4 billion, the Mint newspaper reported on Thursday.  It will take around a month for the complete paperwork to be completed and a formal announcement is expected shortly after that, a GVK executive told the paper.                                           

Last month, two sources familiar with the deal had told Reuters that Australia's Hancock Prospecting had extended a deadline for exclusive negotiations with GVK Power over the sale of the mines until June. GVK was in advanced talks with Standard Chartered and ICICI Bank to fund its possible acquisition of Hancock's Alpha Coal and Kevin's Corner mines for around $1.3 billion, sources with direct knowledge of the matter told Reuters in April.

GVK Power could not be immediately reached for comment. Indian firms are eyeing coal assets overseas to supply power plants in India, looking to benefit from the energy-hungry nation's aim to halve its nearly 14% peak-hour power deficit within two years.