JSW Energy announced acquisition of part of a company that owns shares in South African Coal Mining Holdings for an undisclosed amount. In a stock exchange filing, JSW Energy said it has acquired a 49.8% stake in Royal Bafokeng Capital from Strider Holdings and reserves the option to buy the remaining 50.2% from Royal Bafokeng Ventures.
JSW Energy can also opt to buy the entire shareholding in Mainsail Trading 55, another investor in South African Coal Mining, from RBH Resources Holding, the company said in a statement.
Royal Bafokeng Capital and Mainsail collectively hold a majority stake in South African Coal Mining and hence the transactions, when completed, would result in change in the control of the company.
South African Coal Mining Holdings had its share trading suspended in Johannesburg after it failed to submit a provisional earnings report.
A person close to the deal, who did not wish to be named, said JSW’s cost of acquisition, would be around $50 million if the target company’s debt is taken into account. The acquisition is part of JSW’s efforts to secure coal supplies for its power projects.
South African Coal Mining Holdings incurred a loss of 94.2 million rand ($13 million) for the year to December 31, compared with a profit of 111.9 million rand ($15 million) a year earlier.
Shares of JSW Energy gained 4% in a flat Mumbai market to close at Rs 120, the highest closing since January 4 when the shares were listed after the company’s share sale in primary market. JSW Energy raised Rs 4,500 crore through a public offer to part finance power projects with a total capacity of 3,000 mw. It plans to have total power producing capacity of 11,400 mw by 2015.
Any encounter with the Income Tax Department is usually dealt with stress and panic. The notice from the Income Tax Department becomes nerve-racking because most of the people More
Helplinelaw can set up your session with quality and experienced lawyers to discuss and resolve your legal matters. You can avail consultation in form of sending questions, phone call or webchat discussion More