Adani Enterprises Limited has acquired the Galilee basin coal tenement from Linc Energy Limited for $2.7 bn.

Linc Energy will receive A $500 mn in cash and A$2 per tonne in royalty for the first 20 years of coal production from the mine.

Adani Enterpise has made this acquisition through its step down subsidiary Adani Mining Pty. Ltd.

Singhi Advisors had advised Adani Enterprises on the deal.

The coal from the Galilee basin would support and enable the expansion of the Power business of Adani Power Ltd. in India. The Galilee tenement has 7.8 bn tons of coal resources.

Adani would target the production of over 50 mn MT of coal per year from 2014 after development of mines and other infrastructure, including a 500km of rail tracks.

Transaction Reference: DC

Linc Energy is an Australia based clean technology company. Linc Energy has
Potential to economically convert ‘standed’ coal, from deep underground, into ultra-clean liquid fuels.

However, with the major focus on UCG, Linc Energy wants to exit from its noncore coal assets in Queensland.

Adani Power, in which Adani Enterprises has a stake of about 70%, has 4 thermal power plants under various stages of development and planning with a combined planned capacity of 9,900 Mw.

The company also has coal mines in Indonesia.

In 2007, Reliance Industries Ltd had bought 49% stake in 8 uranium exploration blocks owned by Uranium Exploration Australia in South Australia and Northern Territory at about $4 mn.

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KVEZAR VIEW

  DEAL TRACKER FOR

Date	Transaction	Type	Buyer	Size ($mn)
03/08/10	Linc Energy - Galilee Coal Tenement - Adani Enterprises	M&A	Adani Enterprises Limited	2700.00

 

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  Profiles

Company
Name	Promoters	Office	Competitor	Website
Adani Enterprises Limited	Vasant S Adani Rajesh S Adani Gautam S Adani	Adani House,Shrimali Society, Mithakhali Six Road, Navrangapura	Sicagen India Limited Aditya Birla Nuvo Limited	www.adanigroup.com

  Advisor

Singhi Advisors