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Lanco Infra unit to buy Griffin Coal Mining

Lanco Infra unit to buy Griffin Coal Mining
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First Published: Wed, Dec 15 2010. 09 26 AM IST
Updated: Wed, Dec 15 2010. 09 26 AM IST
Mumbai: India’s Lanco Infratech said on Wednesday its Australian unit has agreed to acquire Griffin Coal Mining Co and Carpenter Mine Management (Griffin Coal) for an undisclosed sum.
West Australia-based Griffin Coal owns thermal coal mines with a production of more than 4 million tonnes per annum and can be ramped up to more than 15 million tonnes in the near term.
“It’s a large coal asset with a large resource base” Suresh Kumar, chief financial officer at Lanco Infratech, said, adding the acquired property will boost production “significantly” in the next three or four-year.
“This acquisition also presents an opportunity for Lanco to participate in the burgeoning natural resources trading market,” Kumar said in the statement to the stock exchanges.
Lanco Infratech is funding the deal through debt and expects it to immediately start adding to revenue, Kumar said.
The company will also keep looking for more acquisitions in Australia, Africa and Indonesia, he added.
Privately-held Griffin was under administration after the company missed a A$25 million payment to bond investors last December and faced a A$5 million tax Bill.
At 9.28 am, shares of Lanco Infratech, which the market values at Rs146.88 billion, were trading up 2.95% at Rs62.80 in a weak Mumbai market.
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First Published: Wed, Dec 15 2010. 09 26 AM IST