GMR buys 33.5-per cent stake in Canada’s Homeland Energy

GMR Infrastructure yesterday said its subsidiary firm GMR Energy has acquired a nearly 33.5-per cent stake in the Canada-based coal producer Homeland Energy Group in a share exchange agreement.

GMR Energy "has acquired ownership of 7.57 crore common shares, about 33.5 per cent of Homeland Energy Group (HEG), Canada," GMR Infra said in a release. The shares have been issued to GMR so that Homeland Energy could retain a 100-per cent stake in its South African subsidiary Homeland Mining Energy.

Reuters quoted commented Tom Griffis, chairman of Homeland's board of directors, "This share issue eliminates $30 million in debt and allows Homeland to focus on building its business, developing its South African projects and carrying on discussions regarding the purchase of Appolo Mines and Diversified Energy in the Central Appalachian region of the United States."

Homeland Energy Group Ltd is a coal producer with operations in the Witbank area of South Africa. It claims to have 400 million tonnes of coal reserves. GMR is looking to acquire mining assets for its greenfield power projects. GMR is also looking to acquire coal assets in Indonesia.

GMR has acquired the shares for long term investment purposes and currently does not intend on acquiring ownership of, or control over, any additional securities of Homeland, its release clarifies.