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Sesa Goa completes buyout of Goa Energy-news03022012


Iron ore miner Sesa Goa said it has completed the acquisition of Goa Energy from Videocon Industries and other shareholders for Rs101 crore.

'Sesa Goa, a majority-owned subsidiary of Vedanta Resources, the London-based FTSE 100 metals and mining group, is pleased to announce that it has completed the acquisition of Goa Energy,' it said in a regulatory filing.

Sesa Goa had signed a definitive share purchase agreement with Videocon Industries and other shareholders of Goa Energy in November last year. Goa Energy owns and operates a 30MW waste heat recovery power plant in Goa.

The Anil Agarwal-led company had agreed to acquire 100% of the outstanding common shares of Goa Energy for the enterprise value of Rs101 crore, including Rs2.75 crore working capital. Sesa Goa had said that the acquisition would be funded by internal cash.

The buy out would enable Sesa Goa to exploit synergies with its pig iron and coke making operations at Amona, Goa and to secure cost reduction on its own power requirements.

Sesa Goa has a 0.28 million tonnes a year metallurgical coke plant and 0.25 million tonne per annum pig iron plant in Goa. Besides this, it has operations in Karnataka.

At 9.41 am, Sesa Goa was trading at Rs212, down by 0.28%, with a volume of 0.95 lakh shares on the BSE. 

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