GVK to cut stakes in Australia coal, rail, port projects

Mar 21, 2012 |

Reuters

Hong Kong

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GVK Power & Infrastructure Ltd is looking to sell down its stakes in the Alpha coal project and related port and rail assets in Australia to help fund the $10 billion cost of the projects, its Australian chief said on Wednesday.

GVK bought a 79 per cent stake in the Alpha and Alpha West thermal coal projects in Queensland's Galilee Basin and 100 per cent of the Kevin's Corner coal project next to Alpha and the rail and port project linking to the Abbot Point terminal for $1.26 billion last year.

The remaining 21 percent in the Alpha coal projects is owned by Australia's richest woman Gina Rinehart's Hancock Prospecting.

"GVK will sell down its stakes across Alpha, the rail and the port, but will maintain a majority," said Paul Mulder, chief executive of Hancock Coal, the Australian arm of GVK.

The process is under way, with Macquarie advising on the sale of the infrastructure stake while Citi is advising on the sale of the mine stake.

"We're aiming for financial close towards the end of this year - quarter 3, quarter 4 - at which point debt and equity need to be lined up," Mulder told Reuters on the sidelines of a mining conference in Hong Kong.

He declined to comment on how much GVK was looking to raise.

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