| The Anil Dhirubhai Ambani Group (ADAG) has evinced interest in acquiring PT Berau Coal, one of the largest thermal coal firms in Indonesia.
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| Confirming this, an ADAG spokesperson said, “We are looking for coal assets across the globe, particularly in Indonesia,” he said.
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| The group has earmarked over Rs 4,000 crore to acquire coal mines in foreign countries.
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| The buy will have significant synergies for ADAG power company Reliance Power that was awarded the 4,000 Mw imported coal- based project at Krishnapatnam in Andhra Pradesh.
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| Reliance Power, which is also raising funds through a maiden issue, is expected to be the group’s vehicle for bidding for PT Berau.
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| ADAG may face competition from at least another Indian contender as the Sajjan Jindal-controlled JSW Energy has also decided to evaluate the acquisition proposal.
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| Said Seshagiri Rao, joint managing director, JSW Energy, “It is not clear whether it would be an outright sale or a small equity participation. We are looking for coal security. So we will evaluate once there is clarity in the proposal.”
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| P T Berau, a three-way joint venture between PT Armadian Tritunggal (51 per cent), a Dutch company dan Rognar Holding BV (39 per cent) and a Japanese firm Sojitz Corp (10 per cent) has a production capacity of over 7 million tonnes.
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| Investment bankers said a few more Indian companies are expected to join the fray shortly with Indonesia becoming the preferred destination for domestic firms to secure coal.
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| The proposed sale of PT Berau Coal is likely to replicate the sale of PT Bumi, another Indonesian coal company that had drawn bids from several Indian buyers.
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| Tata Power, the country’s largest private power firm, bought 30 per cent in it for $1.1 billion, beating six bidders including Reliance Energy.
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| Tata Power, however, is not interested in P T Berau, a top source in the company, said.
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| Merrill Lynch is learnt to be its advisor for sale.
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| India now imports 25 million tonnes a year of thermal coal, and its requirements are expected to double by 2020. |
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