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News Roundup: Reliance Closes Financial Transaction Of Marcellus JV

23 April, 2010

Reliance Closes Financial Transaction Of Marcellus JV – Reliance Marcellus Ltd, the subsidiary of Mukesh Ambani-led Reliance Industries Ltd, has completed the financial transaction of its recently announced joint venture with Pennsylvania-based energy major Atlas Energy Inc. As part of the agreement, Reliance has paid around $339 million in cash and will pay an additional $1.36 billion under a carry agreement for 75% of Atlas’ capital costs for a period of seven-and-a-half year development programme of Marcellus Shale. Reliance-Atlas joint venture will now control around 343,000 Marcellus Shale acres, of which around 137,000 acres are net to Reliance, it said in a statement. (Team VCC)

Gayatri To Sell 49% Stake In Andhra Power Project – Gayatri Projects Ltd (GPL), a Hyderabad-based construction company, is roping in a strategic partner in its largest power project coming up at Krishnapatnam in Andhra Pradesh. Gayatri is likely to sell 49% stake in the project for about Rs 1,200 crore to the partner, who has strong presence in South East Asia. The company, which is developing a 1,320 MW coal-based plant, has estimated the project cost at around Rs 6,890 crore, out of which about Rs 1,730 crore would be equity while the balance is through debt. (DNA)

Jaypee Infratech To Raise Rs 2,350Cr In IPO – Jaypee Infratech Ltd, part of the diversified infrastructure major Jaypee Group, is planning to raise about Rs 2,350 crore through share sale in its forthcoming initial public offer (IPO). It has set the price band of Rs 102-117 per share for the offer. The offer comprises the sale of 60 million shares by parent construction firm Jaiprakash Associates as well as some fresh issue of shares. The offer will open on April 29 and will close on May 4, 2010. (Reuters)

Atlas, Reliance JV To Buy More Marcellus Shale Property – A couple of weeks after Reliance Marcellus Ltd, the subsidiary of Mukesh Ambani-led Reliance Industries Ltd, has entered into a joint venture agreement with Pennsylvania-based energy major Atlas Energy Inc for the production of Marcellus Shale, the JV announced its plan to buy another 42,344 acres in the gas-rich Marcellus shale. The companies will buy the acreage in Fayette, Washington, Indiana, Westmoreland, Armstrong and Clarion Counties of Pennsylvania at an average price of $4,532 per acre. As part of the JV, Reliance is paying $1.7 billion, or $14,000 an acre to Atlas, to buy a 40% stake in Atlas’s operations in the Marcellus shale. ()

ArcelorMittal Eyes JV With SAIL – ArcelorMittal, the global steel major led by billionaire LN Mittal, is planning a joint venture company with India’s largest steel company Steel Authority of India Ltd (SAIL) to set up an integrated steel plant in the country. The proposed project would be located near the SAIL’s existing steel making facility at Bokaro in Jharkhand. ArcelorMittal has proposed a 50:50 joint venture to set up a 3-4 million tonne steel plant with SAIL with an investment of around Rs 12,000 crore. Earlier, Korean steel maker Posco has intended to form a JV company for the same steel project. (ET)

IPO Price Band Values Essar Energy At $9.5-11B – Essar Group, which has launched an initial public offer of its energy and power business subsidiary Essar Energy to raise about $2.5 billion in one of the biggest IPO in London by an Indian company since 2007, got $9.5-11 billion valuation as per the price band of the IPO, that is lower than the $10-12.5 billion the company had initially pitched to institutional investors. Essar Energy is likely to dilute 20-25% stake in the company in this public offer. (DNA)

Proton Holdings Relooks India Partner – Proton Holdings Berhad, a Malaysian car maker in which the Malaysian government is also a shareholder, is relooking at options for a joint venture in India. Earlier, Proton was in talks with the Hero Group, as well as Mahindra & Mahindra, among others, but the talks did not fructify. (DNA)

State-run KPCL To Divest Stake – Karnataka Power Corporation Ltd (KPCL), a state-run company engaged in the generation of electrical power, has initiated talks to disinvest 16-26% of its equity to part-fund new generation projects. The company has earmarked an expenditure of over Rs 40,000 crore in the next three years. The new projects are aimed at creating 8,200 MW of power through 2013. (Business Line)

Bessemer Venture Says Bye To Two Of Its Partners –  Venture capital firm Bessemer Venture Partners has reportedly asked two of its partners to leave the firm. Devesh Garg, a managing director of BVP India, and Justin Label, a partner working out of Menlo Park, were the two departees of the company. Garg joined the firm in 2003 as an operating partner, while Label in 2001. (PEHub)


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News Roundup: Reliance Closes Financial Transaction Of Marcellus JV

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