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CIL To Hire Merchant Bankers For Acquiring Stakes In Australian Coal Assets

Coal News - Published on Tue, 11 Jun 2019

Image Source: SteelGuru
PTI reported that state-owned Coal India will hire merchant bankers to carry out financial due diligence for acquiring equity stakes in identified mines and companies in Australia as part of its plan to meet the growing dry fuel demand in the country. CIL has identified coal assets in Australia for acquiring equity stakes along with offtake rights in an asset or a company, Coal India said in a notice inviting proposals from investment bankers.

CIL said that “CIL intends to avail the services of internationally reputed merchant banker/investment banker to carry out financial due diligence and render transaction advisory services with respect acquisition of stakes along with offtake rights in a coal asset in Australia held by a company for the purpose for arriving at an enterprise valuation of the company and framing of a non-binding Offer initially and followed by a final and binding offer. A tender is being floated for engagement of merchant banker/ investment banker for assisting CIL in acquiring coal assets in Australia.”

Coal India looks to acquire assets abroad as it expects that domestic production would not be sufficient to meet coking coal and high-grade fuel demand from various sectors. The demand-supply gap in India is high due to enhanced requirements from various sectors, including power and steel.

To meet the projected gap between demand and supply, while the efforts are on to enhance coal production from the indigenous sources, it will not be possible to bridge the entire gap of demand of coking coal and high-grade low ash thermal coal.

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Posted By : Rabi Wangkhem on Tue, 11 Jun 2019
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