GVK to acquire Australian coal assets for $1.2bn

20 September 2011 (Last Updated September 20th, 2011 18:30)

Indian firm GVK Power and Infrastructure has entered into a transaction to acquire a majority stake in Hancock Coal's assets in Queensland, Australia, for $1.26bn.

Indian firm GVK Power and Infrastructure has entered into a transaction to acquire a majority stake in Hancock Coal's assets in Queensland, Australia, for $1.26bn.

Under the transaction, GVK will acquire a 79% stake in the Alpha and Alpha West coal projects located in the Galilee basin and a 100% shareholding in Kevin's Corner coal project, located adjacent to the Alpha coal project.

The acquisition will be made through Singapore-based GVK Coal Developers, an indirectly owned subsidiary of GVK Natural Resources.

GVK will also purchase a 100% shareholding in the proposed rail project connecting the coal projects to the port of Abbot Point and in the proposed port expansion project to export the coal.