Sesa Goa Ltd, an arm of London-listed Vedanta Resources Plc, has acquired the mining assets of Dempo Group paying Rs 1,750 crore. The Goa-based Goa-based iron ore mining company, Dempo Mining Corporation, is a wholly-owned subsidiary of V S Dempo & Co. The acquired firm has iron ore reserves of approximately 50 million tonnes and presently produces and exports around 3-4 million tonnes iron ore. The deal comes even as Sesa Goa's parent company Vedanta is in race to acquire to acquire US-based Asarco.
Besides reserves, the deal would also give Sesa access to Dempo Minings processing plants, barges, jetties and transhippers. The firm also has 19 mining leases spread across 1,800 hectares in Goa and has also signed memorandum of understanding with Maharashtra and Jharkhand
governments forits foray into those states.
The acquisition is an all-cash deal and will be funded internally. The deal would allow Sesa to increase output and serve markets like China. Sesa closed at Rs 192.15 rupees on Thursday, rising by 6.7%.
Anil Agarwal-controlled Vedanta Plc picked up a 51% stake in Sesa Goa for around Rs 4,070 crore in April 2007.