GVK to Acquire Hancock Coal

5 April 2011 (Last Updated April 5th, 2011 18:30)

GVK has signed an exclusive agreement to continue negotiations for the acquisition of Hancock Coal. Under the agreement, GVK must make an initial payment of $1.3bn or prove its capacity for the same within the exclusivity period. GVK must also continue payments for the next

GVK has signed an exclusive agreement to continue negotiations for the acquisition of Hancock Coal.

Under the agreement, GVK must make an initial payment of $1.3bn or prove its capacity for the same within the exclusivity period.

GVK must also continue payments for the next three to four years.

Apart from the $4bn equity, GVK has to pay another $4bn as debt and mining development costs over the next six years, which brings the total estimate of the deal to $8bn.

Three banks have agreed to extend finance of $420m each to fund the acquisition.

Hancock Coal has two mines, Alpha Coal Project and Kevin's Corner located in Queensland, Australia.