GVK Coal in ‘historic’ deal with top Oz freight firm
13 March 2013 5:06 AM IST
Australia's largest rail freight company, Aurizon, will buy 51 per cent stake in Hancock Coal Infrastructure, which owns GVK Group's Hancock rail and port projects in Galilee Basin in Queensland, for an undisclosed sum.
Aurizon and GVK Coal Infrastructure (Singapore) have signed a non-binding term sheet to jointly progress the development of rail and port infrastructure to unlock Galilee Basin coal reserves including GVK Hancocks Alpha and Kevin's Corner, a statement on Monday said.
Under the proposed framework, Aurizon, would acquire a majority (51 per cent) interest in Hancock Coal Infrastructure Pty Ltd, which owns GVK Hancock's rail and port projects, and would invest through upfront consideration at completion of the transaction and deferred consideration at financial close of each phase of the projects..Terming the agreement with Aurizon as one of the most significant deals in Queensland's coal history GVK Chairman G V Krishna Reddy said development of the rail and port infrastructure will unlock the Galilee Basin and see the development of Alpha, Kevin's Corner and Alpha West, creating one of the largest integrated coal development projects globally.'I am sure it will be a win-win relationship leveraging on each other's strengths in project development and operation,' Reddy said in the statement.GVK Vice-Chairman G V Sanjay Reddy said at full capacity, the proposed arrangement is intended to provide sufficient equity and debt funding for the projects to reach financial closure. These projects comprise a greenfield rail project and a development right for a coal terminal at Abbot Point.
Aurizon and GVK Coal Infrastructure (Singapore) have signed a non-binding term sheet to jointly progress the development of rail and port infrastructure to unlock Galilee Basin coal reserves including GVK Hancocks Alpha and Kevin's Corner, a statement on Monday said.
Under the proposed framework, Aurizon, would acquire a majority (51 per cent) interest in Hancock Coal Infrastructure Pty Ltd, which owns GVK Hancock's rail and port projects, and would invest through upfront consideration at completion of the transaction and deferred consideration at financial close of each phase of the projects..Terming the agreement with Aurizon as one of the most significant deals in Queensland's coal history GVK Chairman G V Krishna Reddy said development of the rail and port infrastructure will unlock the Galilee Basin and see the development of Alpha, Kevin's Corner and Alpha West, creating one of the largest integrated coal development projects globally.'I am sure it will be a win-win relationship leveraging on each other's strengths in project development and operation,' Reddy said in the statement.GVK Vice-Chairman G V Sanjay Reddy said at full capacity, the proposed arrangement is intended to provide sufficient equity and debt funding for the projects to reach financial closure. These projects comprise a greenfield rail project and a development right for a coal terminal at Abbot Point.
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