SIGN UP

COMPANY INFORMATION
Company Name*
Website
Email ID
Phone
Company Address*
Company State*
Company City*
Pin Code*
 I agree to the Terms and Conditions.
captcha image
< BACK       

Merchant bankers show CIL way to foreign acquisition

Share:            
news
Source: Financial Express, June 20, 2019

Coal India (CIL) has decided to go for an open tender for appointing a merchant banker to acquire coking coal assets in Australia, following a pre-notice inviting tender (NIT) meeting on Wednesday.



Coal India (CIL) has decided to go for an open tender for appointing a merchant banker to acquire coking coal assets in Australia, following a pre-notice inviting tender (NIT) meeting on Wednesday.



CIL drew suggestions from merchant bankers about the format of the tender document that is likely to be floated in two weeks. Following the appointment of the merchant banker, the company will finalise the coal asset, which it would either acquire entirely or pick up stakes in with an offtake agreement, a CIL official said.



“We had to draw suggestions from merchant bankers on the format of the tender document since it would be the first such initiative from CIL to float a global tender for acquiring an asset abroad,” the official said.



Although CIL has got coal assets in Mozambique, those were acquired through International Coal Ventures Ltd (ICVL), a four-way venture of CIL, SAIL, RINL and NMDC. Although NTPC joined the venture initially, it pulled out in the middle. ICVL was, however, dismantled at a later stage.



Although CIL didn’t want to name the merchant bankers who took part in the pre-NIT meet because of a disclosure agreement signed with them, officials said every merchant banker who attended the meeting has presence in Australia since that is pre-requisite for participating in the tender.



Most of the major global merchant bankers like Goldman Sachs, Merill Lynch and others alike had pulled out of coal after the Paris convention on climate change that brought a number of regulations. There are a few global players like ANZ, BNP Paribas, JP Morgan others that are still working on coal assets.



A company source close to the development told FE that CIL is betting on ANZ but the merchant banker would be appointed through the process of a global tender. The appointed merchant banker will be responsible for doing the financial due diligence and carrying out the entire transaction. It is only on the basis of the suggestion of the merchant banker that the PSU miner will zero in on the asset, a CIL official said.



Earlier, CIL had called for a limited tender to rope in a merchant banker, which virtually received no response. “The pre-NIT meet has given a clearer picture as to how to go ahead with the plans of foreign acquisition,” the CIL official said, adding that CIL has been to trying acquire coking coal assets abroad since 2012 and has been looking for opportunities in the US, Canada, Russia and Australia.



It had formed an expert group with representatives from the Ministry of External Affairs, coal and Department of Economic affairs to look into the nitty-gritty of foreign acquisition.



News Source: Financial express

Indian coking coal imports rise by 14.25pc in 2018...

ArcelorMittal to shut Polish plant temporarily due...

Poland's JSW does not expect a fall in coal orders...

Turkey boosts imports of coking coal from US, Cana...

EU steel woes yet to shake US coking coal outlook

Atlantic coking coal: US prices flat

Chinese users buy US coking coal amid lower offers...

Chinese users buy US coking coal amid lower offers...

India to surpass China as largest importer of coki...

Peabody proceeds North Goonyella restart plans

China's steel PMI slides on fewer new orders

Chinese iron ore, coking coal prices fall as steel...

China’s steel, raw materials weaken as demand outl...

Coking coal and iron ore derivatives volume spikes...

Atlantic coking coal: Ukraine seeks extra US tonne...

Coking coal and iron ore derivatives volume spike...

US coking coal exports decline in April

Indian coking coal imports rebound in April

South Korea coking coal imports up in May

Polish coking coal imports surge despite demand ea...

South Korea blocks shutdowns of blast furnaces: Up...

Iron ore and steel players urge govt to abolish im...

China’s iron ore sizzles in record-setting rally

Steel, iron makers seek removal of duty on coking...

Steel, iron makers seek removal of duty on coking...

Atlantic coking coal: Europe sentiment lacklustre

China iron ore soars as Rio Tinto cuts shipments f...

Indian association seeks zero duty on coke, coking...

Coal India targets stakes in overseas coke mines

India buying more US coking coal after disruptions...

Outlook shaky as US domestic met coal talks loom

India imported coal worth Rs 1.7 lakh cr in FY'19

Middlemount coking coal mine shuts after fatal acc...

Japan's coking coal imports drop in May

Public spending to lift Indian steel demand: JSW

Australian receipts drive Turkish coking coal impo...

China coking coal importers on edge as port quotas...

Atlantic coking coal: Pressure persists

JFE Steel settles 3Q PCI and semi-soft contracts

India's infrastructure spending plans to support s...

US, Canadian coking coal exporters eye SE Asia

Atlantic coking coal: Turkey talks ongoing, prices...

Metinvest shores up coal supply amid Russia disrup...

Indian coking coal imports drop in May

Economy strong thanks to China, ‘heaps of stimulus...

India's coking coal imports at 51.84 MT in 2018-19

Power producers protest rise in coal auction price...

Coal allocation by CIL to power sector drops 6 pc...

Coal India reports 362% rise in Q4 net profit

Coal India profit beats estimates in Q4, but outlo...

CIL's output falls 1.1%, off-take 1.4% in May

Coal India profit beats estimates in Q4, but outlo...

Coal India lines up ₹ 10,000 cr capex to boost out...

Coal India identifies assets in Australia for acqu...

India's coal import rises 15% to 24 MT in May

CIL’s relaxed production target still looks stiff

India's annual coal demand rises 9.1% to nearly 1...

37,700 MW of power plants left with 1-5 days of co...

Coal supply by CIL to power sector drops 3 pc in A...

Coal India’s flat Q1 growth puts stiffer tagets of...

Coal India’s flat Q1 growth puts stiffer tagets of...

Share: