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Mr G.V.K. Reddy, Chairman of the diversified Hyderabad-based GVK Group, is set to take over as the Chairman of the recently acquired Hancock Mine assets company including with related infrastructure, located at Galilee basin in Queensland down under for a payout of $1.26 billion.
A board meeting is slated to be held shortly, which will pave way for takeover of Mr Reddy as the Chairman of the mining company and also facilitate other members of his family including Mr Sanjay Reddy, to become directors on its board.
Ms Gina Reinhart of Hancock Group, who sold majority stake in Alpha and Alpha West Coal projects, Kevin's Corner Coal project, and other related assets including railway line and right for port project, will step aside as Chairman to become the director on board, according to Mr G.V.K. Reddy.
REGULATORY ASPECTS
Speaking to Business Line , Mr Reddy said Ms Reinhart has expressed intent to invest in the publicly-traded GVK Power & Infrastructure Ltd (GVKPIL), subject to mandatory clearances from SEBI and other regulatory bodies, including FIPB. This move will be complementary and also engage us mutually in coal mines and power generation, he said.
Describing it as the largest such transaction between Indian and Australian company, entailing investment of up to $10 billion, Mr Reddy said several strategic investors are knocking at its doors to partner to secure their coal requirement. In fact, meeting with a couple of them is scheduled for next week. However, the due diligence could take up to 30 days.
APPOINTS BANKERS
“These are strategic investors from Japan, China and Taiwan, who have been approaching us to invest. The best part of such transactions is we will also be able to implement them by closing the required funding. We have enlisted the services of bankers — Citibank, Macquarie and ANZ – for equity, debt and project finance aspects,” he said.
“This is a large project which requires close attention in terms of business plans and overall execution. Initially, myself and Mr Sanjay Reddy will closely monitor its progress as we take it through a period of consolidation. If necessary, we will stay in Australia from time to time,” he said.
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