Lanco Infratech up 8% on coal agreement with Griffin Power
Lanco Infratech gained more than 8 percent in early trade on Monday after the Supreme Court of Australia has pronounced judgement for coal supply in favour of Griffin Coal Mining Company PTY Ltd (a subsidiary of Lanco Infratech).
Shares of Lanco Infratech gained more than 8 percent in early trade on Monday after the Supreme Court of Australia has pronounced judgement for coal supply in favour of Griffin Coal Mining Company PTY Ltd (a subsidiary of Lanco Infratech).
The company said Supreme Court of Western Australia in its judgement has allowed the Griffin Coal Mining Company Pty Ltd (GCMC) to enter into revised coal supply agreement (CSA) with the Griffin Power entities which is in process of being acquired by Japanese consortium of Sumitomo Corp and Kansai Electric Power Co.
The court has rejected the contention of Perdaman Chemicals and Fertilizers Pty Ltd (PCFL).
Lanco Infratech through its Australian subsidiary, Lanco Resources Australia, had acquired Griffin Coal Mining Company and Carpenter Mine Management for AUD 720 million in February 2011. Last year Griffin produced over 3 million tonne of coal.
L Madhusudhan Rao, Executive Chairman, Lanco Infratech Limited, said, “The revised CSA will result in a gain of approximately AUD 150 million in NPV terms, including a substantial upfront payment to Griffin Coal Mining Company Pty Ltd”.
Other news was: The Economic Times reported that Lanco Infratech has begun talks with JSW Energy and Adani Power to sell a power plant in Karnataka as banks pile pressure on debt-laden power companies to sell assets and improve cash flow.
At 09:34 hours IST, the stock rose 8.14 percent to Rs 13.55 on the Bombay Stock Exchange. Market capitalisation of the company currently stands at Rs 3,262.58 crore.
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