Vedanta group firm Sesa Goa will acquire 100% stake in Goa Energy from Videocon Industries and other shareholders for Rs 53.72 crore.
In a regulatory filing today, the private sector iron ore miner said it has signed a definitive share purchase agreement with the shareholders for the "all cash deal".
The agreement includes taking over an existing debt of Rs 47.28 crore of Goa Energy, which owns and operates a 30 MW waste heat recovery power plant in Goa.
"This agreement is subject to certain conditions precedent including approvals from the lenders and power purchasers," the filing further said, adding that the acquisition will be funded by internal cash of Sesa Goa.
"The acquisition will enable Sesa Goa to exploit synergies with the pig iron and coke making operations at Amona, Goa and to secure further cost reduction on its own power requirements, the filing said.
Sesa Goa has a 0.28 million tonne per annum metallurgical coke plant and 0.25 million tonne pig iron plant in Goa. Besides this, the company also has operations in Karnataka and in 2010-11, it had produced over 18 million tonnes of iron ore.
Shares of the company today closed at Rs 210.45 apiece on the BSE, up 1.59% from the previous close.