Mumbai: JSW Infrastructure, part of the diversified JSW Group, said it will raise up to $125 million by selling a 10% stake to hedge fund Eton Park Capital to expand its ports business and pare debt.
Eton Park manages about $13 billion and has offices in New York, London and Hong Kong and JM Financial was the sole financial advisor to the deal, it said in a statement.
JSW Infra operates a port at Jaigarh in Maharashtra and at a terminal in Goa. It plans to eventually boost cargo handling capacity at Jaigarh to 50 million tonnes from its current 20 million tonnes by 2020, chief executive officer BVJK Sharma told reporters.
“The investment by Eton Park will help us in achieving the vision of reaching 180 million tonnes of cargo handling capacity by 2020,” Sharma said.
JSW Infrastructure chairman, N.K. Jain, said the funds will also be used to retire about 2 billion rupees of debt from a total debt of about Rs500 crores.
The JSW Group, which has interests across steel, energy, mining and infrastructure, is also in talks to develop port projects in Chile and Mozambique.
The group plans to initially invest between $60 million to $100 million to develop a port in Caldera in Chile, which will help boost connectivity with iron ore mines.
The company expects maritime and environmental clearances for the Chile project in the next 3 months and hopes to start development at the site in the next financial year.
“The group has invested in iron ore mines in Chile. They will require proper logistics connectivity and at the same time optimise sea trade,” Sharma said.
The JSW group is also in talks with the government of Mozambique to operate a port in Beira. It has drawn up a plan to invest roughly $150 million in Mozambique, but the exact amount was not yet been decided, Sharma added.