GVK Power and Infrastructure Limited (GVKPIL) acquired a major coal resource and infrastructure development project, Hancock Coal in Australia. Valued at USD 1.26 billion, it is one of the largest overseas acquisitions made by an Indian infrastructure company.
GVK said the Hancock Group will receive the consideration in a phased manner with USD 500 million upfront, USD 200 million on closure of deal and the balance USD 560 million when the project achieves financial closure in 2012. GVK estimates a total investment of USD 10 billion in the first phase of developing the mines, rail line and port.
The investment is being made in GVK Coal Developers (Singapore) Pvt Limited (GVKCD) a step down subsidiary of GVK Natural Resources Private Limited (GVKNRPL) a GVK Group company. GVK Power will initially have 10% stake in GVK Coal Developers, said vice chairman of GVK Power Sanjay Reddy. The company will look to hike its stake to 49% within the next three-six months.GVK acquires Hancock's coal & infra assets for $1.26bn
In an interview with CNBC-TV18, Reddy said funding requirements for the acquisition have been tied up.
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