GVK seeks PE investors in Australia coal assets
GVK is in talks with several global financial institutions, including private equity firms, with a view to selling minority stakes in Australian mining assets it recently acquired from Hancock for $1.3 billion. The Indian infrastructure group needs to raise funds to develop three mines and also complete a port and rail project that came as part of the Hancock deal, The Financial Times reported.
GVK bought a 79% stake in the Alpha and Alpha West projects based in Abbot Point in Queensland's Galilee Basin, which have the capacity to produce 85 million tons of coal per year, according to Sanjay Reddy, vice chairman of the Indian firm.
Analysts estimate that at least $10 billion needs to be spent on mine, rail and port infrastructure in order to ship the coal to markets in Asia. The Galilee Basin reserves were considered unviable for development until a few years ago because of their remote location. However, rising thermal coal prices have made the reserves a more attractive investment proposition.
Indian companies are increasingly looking overseas for natural resources as tighter environmental regulations and pockets of political instability have rendered many domestic reserves inaccessible.
Last year, Lanco Infratech bought assets from Australia's Griffin Coal for an estimated $743 million. The company went into administration nearly 12 months earlier after failing to meet payment obligations to bondholders. Its largest creditor was distressed asset investor Clearwater Capital Partners.
More on Australasia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.