LANCO Infratech has bought the coal mines of failed Griffin Coal for almost $850 million, in one of Indias largest investment in Australia.
Administrator KordaMentha said today the Indian infrastructure group had agreed to buy the Western Australian Collie coal mines of Ric Stowe’s failed company, which produce more than four million tonnes of steaming coal a year.
The group plans to expand the capacity of the mines and export the coal to India for use in its power stations.
However, the sale does not include Griffin’s nearby Bluewaters power stations, which will be sold in a separate process next year.
The Australian understands Lanco paid between $800m and $850m 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 more than $US3 billion.
Start of sidebar. Skip to end of sidebar.
End of sidebar. Return to start of sidebar.
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.