GVK eyes part stake sale in Australia’s Hancock coal to fund development
18 Apr 2012
Hyderabad-based GVK Power & Infrastructure Ltd, part of the GVK Group, is planning to sell part of its stake in Hancock coal mines in Australia in order to raise the $10 billion required to fund the development of the thermal coal assets.
"We are looking at selling the stake, but we do not want to disclose too much about the project right now because it is owned by a group company," GV Sanjay Reddy, GVK's vice chairman yesterday told reporters on the sidelines of CII's annual general meeting.
In September 2011, GVK Power & Infrastructure acquired majority of the assets of Australia's heiress Gina Rinehart-owned Hancock Coal for $1.26 billion (Rs5,983.74 crore).
The acquisition was 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.
The GVK-Hancock deal included 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.
Initially GVK Natural Resources will hold a 90-per cent stake and GVK Power the remaining 10 per cent in the projects.
GVK Power has the option to increase its stake upto 49 per cent, subject to approvals from Australia's foreign investment regulator.
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