Diversified firm Nava Bharat Ventures today said the company, through its Singapore-based arm, would acquire 65 per cent stake in Zambia-based Maamba Collieries for $26 million (about Rs 121 crore).
Nava Bharat (Singapore), a unit of the company, has signed a share sale and purchase agreement with the government of Zambia for acquiring 65 per cent stake in Maamba Collieries (MCL), Nava Bharat Ventures said in a filing to the Bombay Stock Exchange.
The acquisition entails the initial cost of acquisition of about $26 million by Nava Bharat that would to be paid upon completion which is expected by February 2010, it said.
The government of Zambia is a stakeholder in MCL through state-run Zambia Consolidated Copper Mines (ZCCM), a principal operator of copper mines in Zambia.
"Both the parties agree on having a completion audit whereby the final purchase consideration by netting the liabilities of MCL and tax assets, would be ascertained," the company said.
The acquisition would help the companies to optimise coal mine operation and they would set-up 300 Mw coal power plant.
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.