By IANS,
Sydney: Lanco Infratech, an Indian infrastructure group, has bought the coal mines of Australia’s Griffin Coal for almost $850 million in one of India’s largest investments in the country, a media report said Wednesday.
Administrator KordaMentha said the Indian infrastructure group agreed to buy the Western Australian Collie coal mines of Ric Stowe’s failed company, which produced over four million tonnes of steaming coal annually, The Australian reported.
However, the sale does not include Griffin’s nearby Bluewaters power stations, which will be sold in a separate process next year.
The group plans to expand the capacity of the mines and export the coal to India for use in its power stations.
The newspaper said that Lanco paid between $800 million and $850 million for Griffin Coal.
The group beat four other short-listed bidders, including Chinese and Japanese companies, for the assets.
Lanco is a leading infrastructure player in India, with a presence in power generation, construction, engineering and property development.
It is listed on the National Stock Exchange of India and the Bombay Stock Exchange and boasts a market capitalisation of more than $3 billion.
Lead administrator Brian McMaster, of KordaMentha, said: “Griffin Coal is a major contributor to the south-west economy and currently employs over 400 people. Lanco’s ownership is expected to bring substantial investment as a result of the expansion of the mine operations and associated infrastructure.”
Lanco chief financial officer Suresh Kumar said: “The acquisition of Griffin Coal demonstrates our commitment to the Australian market, which is an important part of our global strategy.
“We are committed to working with all stakeholders to expand Griffin Coal’s operations and making a significant contribution to the Collie community and the South-West region. We are excited about the future prospects for both Griffin Coal and its stakeholders”.
UBS and Macquarie Capital Advisers acted as advisers to KordaMentha on the sale process.