Companies

Lanco finalises Griffin acquisition for AUD 730 m

PTI New Delhi | Updated on March 04, 2011

Lanco Infratech on Friday said it has finalised the acquisition of Griffin coal mines for Australian dollar (AUD) 730 million in the largest ever investment by any Indian company in West Australia.

“We have finalised our acquisition of Griffin coal mines for AUD 730 million, of which upfront payment was AUD 480 million,” Lanco Infra Chief Financial Officer J Suresh Kumar told PTI.

The infrastructure developer had announced acquisition of Griffin Coal mines in December 2010 to secure fuel for its projects to boost its power generation capacity to 15,000 MW by 2015 from existing 2,100 MW.

Mr Kumar said that of the remaining amount, the company will pay AUD 100 million in the next two years, while the remaining money of about AUD 150 million would be paid after four years.

Western Australia-based Griffin Coal’s assets include thermal coal mines with a production capacity of about 5 million tonnes at present. Lanco Infra plans to increase it to about 18 MT by 2015.

He said the company will infuse $1 billion in the Australian asset to ramp up production to about 18 MT by 2015 and is presently focussing on integrating Griffin with itself.

He added the company was eying acquisition of overseas assets in countries, including Indonesia, Australia and Africa.

At present, while its power portfolio includes an operating capacity of about 2,100 MW, the construction and EPC division of the company is executing various orders worth about Rs 27,000 crore.

The company scrip closed today at Rs 36.95 a piece on Bombay Stock Exchange, down 2.76 per cent from its previous close. PTI NAM AMA MVS 03041644

Published on March 04, 2011

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