Vedanta Resources Plc. subsidiary Sesa Goa Ltd has signed a definitive share purchase agreement to acquire 100 per cent of Goa Energy Private Limited(GEPL) from Videocon Industries Ltd and other shareholders of GEPL for Rs 53.72 crore(~$11 million), the company disclosed in a statement to Bombay Stock Exchange on late Thursday evening.
GEPL owns and operates a 30 MW waste heat recovery power plant in Goa which utilises the waste heat and gases from Sesa's coke making and pig iron facilities.
The deal also includes taking over debt of Rs 47.28 crore of Goa Energy and net working capital of Rs 2.75 crore. This agreement is subject to certain conditions precedent including approvals, from lenders and power purchasers, the statement added.
This acquisition will enable Sesa to exploit synergies with the pig iron and coke making operations at Amona and to secure further cost reduction on its own power requirements.
In mid-day trades, Sesa Goa scrip was quoting at Rs 215.90 on the Bombay Stock Exchange, up 2.59 per cent from previous close in a strong Mumbai market. Shares of Videocon Industries traded at Rs 174.80, up 1.33 per cent from previous close.
Earlier in Aug 2011, Sesa Goa Ltd entered into a definitive agreement to acquire 51 per cent stake in Liberia-based iron ore firm Western Cluster Limited, for $90 million in cash.
Sesa Goa is India’s largest producer and exporter of iron ore in the private sector. In the fiscal 2011, Sesa Goa produced 18.8 million tonnes and sold 18.1 million tonnes of iron ore. The company is a majority owned and controlled subsidiary of Vedanta Resources Plc., the London-listed FTSE 100 diversified metals and mining major.
Sesa Goa has mining operations in Goa and Karnataka while it also operates a 280,000 TPY metallurgical coke plant and a 250,000 TPY pig iron plant in Goa.