Tata Power bags stake in Indonesian coal firms
Sunday, 01 April 2007, 17:30 IST
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New Delhi: Tata Power Co Ltd, announced its acquisition of 30 percent equity in two Indonesian thermal coal plants. The two Indonesian companies - PT Kaltim Prima Coal and PT Arutmin Indonesia - is owned by PT Bumi Resources Tbk, a trading firm. "This purchase supports Tata Power's upcoming power projects on the west coast of India comprising 7,000 MW to be developed over the next five years," a company statement said. Tata Power acquired the stakes at $1.1 billion, and the acquisition will be made through an offshore Special Purpose Vehicle (SPV) to be formed. Funding will be done through a combination of debt in the SPV and internal accruals and borrowing from Tata Power. These coal companies are among the world's top three largest exporting thermal coalmines. The two companies also boast of an excellent coal infrastructure, which are also strategically placed at the source of supply.
Source: IANS
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