Monday, December 21, 2009

Nava Bharat Singapore Buys 65Pct Stake in Zambia Maamba Collieries

. Monday, December 21, 2009

By stockOzone team

Nava Bharat (Singapore) Pte Ltd has signed a share sale and purchase agreement (SPA) for acquiring 65 per cent equity stake in Maamba Collieries Limited (MCL) with the Government of the Republic of Zambia holding the Golden Share, acting through the Minister of Finance and ZCCM—IH (ZCCM), holding 100% of the paid up equity capital of MCL.

Nava Bharat (Singapore) Pte Limited (NBS) is a subsidiary of Nava Bharat Ventures Limited (NBVL), a power centric diversified entity.

In a communication to the BSE on Monday, it said, a group of individuals (Zambian Consortium) joined NBS to form Nava Bharat Consortium (Nava Bharat).

The acquisition was made pursuant to the selection of Nava Bharat against a global tender issued by ZCCM in late 2008 for inducting a private majority partner.

The SPA sets out certain conditions precedent (CPs) for completion of the transaction, envisaged by February 2010, a bankable power purchase agreement and an investment promotion and protection agreement which are critical to the proposed investment, for m part of the CPs for the transaction.

Nava Bharat and ZCCM are committed to optimize the mine operations to obtain positive cash flows soon and to establish a 2 x 150 MW power plant by utilizing low grade coal from the coal mine which has reserves of about 65 million MT’s of washed high grad e coal and an equivalent quantum of low grade coal for use as the feed stock for the proposed 300 MW power plant.

The overall integrated project entails capital outlay of about $550 million to be funded by non—recourse project debt and equity.

Nava Bharat’s share of equity for this integrated project is about $ 108 million and that of ZCCM is about $ 57 million. Actual commitment will vary upon finalization of the project cost and financing structure.

Disclosure: Author does not own any of the stocks discussed here.





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1 comments:

Sgx Nifty said...

Excellent stock market in Singapore.

sgx nifty

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