Rel Power agrees to acquire three coal mines of Sugico Group
Reliance Power through its wholly-owned subsidiary, Reliance Coal Resources, has entered into a share-sale agreement with Indonesia-based Sugico Group to acquire three of its coal mines for a total consideration of around $1.6 billion. Earlier in 2008, Rel Power had signed a definitive agreement with Sugico Group for the said deal.
The company will make an upfront payment of $106 million for this deal while the balance consideration will be paid in a phased manner depending upon the mines achieving some production-linked targets.
This acquisition will meet the coal requirements of the proposed Krishnapatnam Power Project of Rel Power. Further, the coal from these mines is also likely to provide cost benefit to the company.
Reliance Power is part of the Reliance Anil Dhirubhai Ambani Group and is established to develop, construct and operate power projects domestically and internationally.
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