Sesa Goa, one of India's largest private sector iron ore producers and exporters, yesterday said that it will acquire Goa Energy from Videocon Industries and other shareholders for Rs53.72 crore.
Sesa Goa, a majority-owned subsidiary of London-based FTSE 100 metals and mining group Vedanta plc, said in a regulatory filing that it has signed a definitive share purchase agreement with the shareholders of Goa Energy for the "all cash deal.
The purchase price of Rs53.72 crore includes net working capital of Rs2.75 crore and debt of Rs47.28 crore.
Goa Energy owns and operates a 30 MW waste heat recovery power plant in Goa, which utilises the waste heat and gases from Sesa's coke making and pig Iron facilities.
Sesa Goa has a 0.28 million tonnes per annum metallurgical coke plant and 0.25 MTPA pig iron plant in Goa.
Panjim-based Sesa Goa said that it will fund the acquisition from existing cash.
This acquisition will enable Sesa to exploit synergies with the Pig Iron and Coke making operations at Amona and to secure further cost reduction on its own power requirements.