Three top Indian companies have joined the race to bid for coal assets of one of Australia’s largest thermal coal explorers, Bandanna Energy, in a deal that could be valued at $1.5 billion. GVK, state-owned consortium ICVL and Reliance Power have shown early interest in bidding for the assets estimated to have reserves of over 1.3 billion tonnes of thermal coal.
Bandanna Energy has initiated an auction process to sell the assets and has mandated UBS to advise it on the transaction. Thermal coal is used by utility coal-fired power plants. Expanding capacities by companies in various industries has led to a rise in power consumption. While India is also rich in thermal coal deposits, high ash content in local coal and reduced production by Coal India has prompted most user companies to scout global resource-rich nations to tap coal assets.
Bandanna would look at selling both minority and majority stake in its ongoing projects as well as explore the possibility of selling the entire entity.
Company Name | CMP |
---|---|
NTPC | 365.30 |
Tata Power | 436.90 |
Power Grid Corp | 312.80 |
Adani Power | 678.65 |
Torrent Power | 1435.80 |
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