IVCL kicks off hunt for coal properties abroad

Kicking off its hunt for coal properties abroad, International Coal Ventures Limited, the Special Purpose Vehicle...

Kicking off its hunt for coal properties abroad, International Coal Ventures Limited (ICVL), the Special Purpose Vehicle (SPV) formed by leading metal and mining PSUs, today approved ten international merchant bankers and their fee structure .

ICVL’s Board of Directors met today to take stock of the proposals on acquiring coal mines abroad. The ten bankers have been given the task of undertaking detailed feasibility study on specific proposals, mostly from Australia. The fee for these bankers was also endorsed by the Board. The bankers include Deutsche Bank, Citibank, Royal Canada, UBS, ABN Amro, Merrill Lynch, JP Morgan and Morgan Stanley, highly-placed sources in the ICVL told The Indian Express.

The international bankers have been broadly divided into two categories for further award of potential business to them. However, sources did not divulge the names of the coal properties in Australia.

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“A team would be visiting Australia to pursue those acquisitions shortly. We are hopeful of some results in about two months time.”

The company is eyeing acquisitions in Australia, Canada, the US, Indonesia, Mozambique, Zimbabwe and South Africa. The acquisitions would be undertaken primarily with a view to ensure raw-material security for the coal-hungry steel and power sectors.

The equity proposed in the SPV are Rs 1,000 crore each by SAIL and CIL and Rs 500 crore each by RINL, NMDC and NTPC. The SPV intends to leverage 1:1 or more by debt.

•Special Purpose Vehicle’s Board approves 10 bankers to undertake feasibility studies on proposals

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•Bankers include Deutsche Bank, Citibank, Royal Canada, UBS, ABN Amro, Merrill Lynch, JP Morgan and Morgan Stanley

•ICVL eyeing acquisitions in Australia, Canada, the US, Indonesia, Mozambique, Zimbabwe and South Africa

•Equity proposed in the SPV are Rs 1,000 crore each by SAIL and CIL and Rs 500 crore each by RINL, NMDC and NTPC

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