GVK clinches Hancock mines deal for $1.26 billion

K V Ramana l Hyderabad It’s official. GVK group has pocketed the strategic part of Hancock’s large, high-quality coal resource and infrastructure development project in Queensland, Australia. GVK Coal Developers (Singapore) Pte Ltd, a step down subsidiary of GVK Natural Resources Pte Ltd, has in joint venture with GVK Power and Infrastructure Ltd entered into various acquisition agreements with Hancock Prospecting Pty Ltd and certain of its affiliated entities to take the deal forward. The deal includes acquisition of up to 79% shareholding in the Alpha (Tad’s Corner) and Alpha West (Paul’s Corner) Coal Projects, located in the Galilee Basin in Queensland. The remaining stake is with Hancock Group. GVK will acquire 100% shareholding in the Kevin’s Corner Coal Project, located immediately adjacent to Alpha and a 100% shareholding in the rail and port project connecting the coal projects to the port of Abbot Point and Abbot Point T3 expansion project while retaining some tonnage capacity for the Hancock Group. The consideration for the acquisition is $1.26 billion, to be paid in a phased manner to the Hancock Group — $500 million at closing, $200 million in a year from closing and $560 million on financial closure of the project (anticipated in 2012), but in any event, no later than three years from closing. GVK said the funding is tied up with banks and the transaction is expected to close and assets transferred in about two weeks.

KV Ramana

Updated : Mar 18, 2018, 04:06 AM IST