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Maatla Energy Acquires Mmamabula Energy & Coal Mining

Coal News - Published on Wed, 21 Aug 2019

Image Source: African Mining Market
African Mining Market reported that diversified energy and coal exploration outfit Maatla Energy has closed in a deal to acquire majority shareholding in Jindal BVI Ltd from Jindal Steel & Power Limited, a Mauritius conceived global energy conglomerate owned by Indian Billionaire Industrialist Naveen Jindal. Maatla Energy is a multibillion pula mid-tier coal mining company in Botswana wholly owned by Maatla Resources Limited. The company is currently developing a coal export mine in Mmamabula Coal Fields, 145 kilometers north of Gaborone. The Mmamabula Coal Project contains over 90 million tonne of high-grade thermal coal. Maatla Energy is also currently conducting feasibility study to explore setting up Coal- Liquefaction Plant in around the operation.

On the other hand Jindal BVI is an investment company incorporated in accordance with the Laws of the British Virgin Islands. It is controlled by Jindal Steel & Power Limited; an investment company registered in Mauritius. Jindal BVI is involved in the mining and metallurgy industry with subsidiaries in Barbados, Bahamas, Mauritius and Botswana. In Botswana, Jindal BVI is present through Jindal Resources (Pty) Ltd a coal exploration and mining company, Trans Africa Rail (Pty) Ltd a railway construction company and Jindal Energy Botswana (Pty) Ltd a power and energy Management outfit.

Jindal BVI's other subsidiaries in Botswana are Meepong Group of Companies encompassing Meepong Resources (Pty) Ltd a mining and management company, Meepong Energy (Pty) Ltd power station operation company in Mmamabula, as well as, Meepong Services (Pty) Ltd and Meepong Water (Pty) Ltd focusing on infrastructural and water abstraction respectively. All these subsidiaries under Jindal BVI were set up as operation companies for the Mmamabula Coal projects.

Reports from global media outfits indicate that Maatla Energy has put a price offer of SI50 million for the acquisition of 97.44% of issued share capital in Jindal BVI a holding company housing all the above subsidiaries. In March this year Competition Authority Botswana as a regulatory requirement floated a merger notice in the market calling for expression of any opposition against the proposed acquisition.

Reports confirming Jindal Steel & Power Limited divestment from Jindal BVI suggests the transaction is predominately motivated by JSPL s quest to pare debt at group level. JSPL is reported to have a total outstanding debt of over USD 5.6 billon as on March 2019.

Company Executives confirmed that JSPL has entered into a share purchase agreement to divest its stake in the Botswana project for a consideration of around S150 million as part of its international portfolio rationalization, an undertaking focusing at disposing some of JSPL mines and minerals assets across Australia, Asia and Africa.

Source :

Posted By : Sanju Moirangthem on Wed, 21 Aug 2019
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