Sesa Goa Limited Agrees to Acquire Goa Energy Private Limited
OREANDA-NEWS. November 7, 2011. Sesa Goa Limited ("Sesa"), a majority-owned subsidiary of Vedanta Resources plc ("Vedanta"), the London-based FTSE 100 metals and mining group, and Videocon Industries Limited along with other Shareholders of GEPL announced today that they have signed a definitive Share Purchase Agreement under which Sesa has agreed to acquire 100% of the outstanding common shares of Goa Energy Private Limited ( "GEPL") for a cash consideration of Rs 53.72 Crores on a cash free basis, including net working capital of Rs. 2.75 Crores and taking over an existing debt of Rs. 47.28 Crores. This agreement is subject to certain conditions precedent including approvals from lenders and power purchasers.
GEPL owns and operates a 30 MW waste heat recovery power plant in Goa which utilizes the Waste heat and gases from Sesa's Coke making and Pig Iron facilities.
The acquisition will be funded from the existing cash.
This acquisition will enable Sesa to exploit synergies with the Pig Iron and Coke making operations at Amona and to secure further cost reduction on its own power requirements.
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