New Delhi: After the much talked-about Corus bid, Tata group is ready to prove its mettle again—this time by prospective acquisition of two major Indonesian coal producing companies.
Tata Power will acquire 30 per cent stakes in two major Indonesian thermal coal producers for Rs 4,840 crore ($1.1 billion), giving it access to one of the largest exporting thermal coal mines in the world.
The company has signed an agreement to purchase 30 per cent equity stakes in PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia (Arutmin) and a related trading company owned by PT Bumi Resources Tbk (Bumi), Tata Power said in a statement.
"This move not only secures our fuel requirements in light of aggressive growth plans charted out by the company but also opens up opportunities for Tata Power to own and operate a range of world-class, competitive and profitable electricity and energy businesses in India and overseas," Tata Power Managing Director Prasad R Menon was quoted by PTI.
The company would pay a consideration of Rs 4,840 crore ($1.1 billion) for this purchase prior to working capital and other adjustments. The acquisition would be made through an offshore Special Purpose Vehicle (SPV), the statement added.
As part of the purchase, Tata Power has signed an agreement with KPC, which entitles it to purchase about 10 million tonnes of coal per annum. This purchase supports Tata Power's upcoming power projects on India's West Coast enabling it to generate 7,000 MW over the next 5-years.
With inputs from PTI
Comments
0 comment