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GVK acquires majority stake in Australia's Hancock Coal for $1.26 billion news
17 September 2011

In the second-largest Indian acquisition in Australia's mining sector after Adani Group's investment in a Queensland coal block, Hyderabad-based GVK Power & Infrastructure Ltd, part of the GVK Group, yesterday acquired majority assets of Australia's heiress Gina Rinehart-owned Hancock Coal for $1.26 billion (Rs5,983.74 crore).

In August 2010, Adani Enterprises acquired a 100-per cent stake in the Galilee Basin coal block in Queensland from Australia's Linc Energy, for around $2.68 billion (Rs12,600 crore).  (See: Adani bags $2.7-billion deal to acquire Australian coal mine)

Earlier in March 2011, another Hyderabad-based infrastructure major, Lanco Infratech, acquired Australia's Griffin Coal for A$750 million (See: Lanco acquires Griffin's Australian coal assets for $750 million).  

GVK will invest an additional $10 billion (Rs47,490 crore) to develop the assets of Hancock Coal, which would make it the largest investment by an Indian company in Australia.

The GVK-Hancock deal includes the Hyderabad company acquiring a majority stake in Hancock coal mines, railway line and port infrastructure projects and an option to buy 20 million tonnes of coal annually under a long-term supply contract.
 
The acquisition will be made through GVK Coal Developers, Singapore Pte Ltd, an indirectly-owned subsidiary of GVK Natural Resources Pte Ltd,  a GVK Group joint venture with GVK Power and Infrastructure Limited. 

Initially GVK Natural Resources will hold a 90-per cent stake and GVK Power  the remaining 10 per cent in the projects.





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GVK acquires majority stake in Australia's Hancock Coal for $1.26 billion