Vedanta Group company Sesa Goa is shopping in Goa. The company is set to acquire Goa’s largest industrial group Dempo’s mining assets in Goa for nearly USD 350 million. CNBC-TV18’s Bureau Chief Sajeet Manghat reports that Dempo has 19 mining leases spread over 1,800 hectares in Goa and that it plans to use the sale proceeds to infuse capital into Goa Carbon and other group companies.
Goa’s largest industrial group Dempo is selling its Goan mining assets to Sesa Goa, which is a subsidiary of Vedanta group and Sterlite. Dempo has nearly 65-75 million tonnes of minable iron ore reserves in Goa spread over 1,800 hectares and 19 mining leases licenses there. All of this would be acquired by Sesa Goa for a value close to USD 350 million. The entire transaction would take some time to be completed.
source: MC
Sesa Goa will benefit from this transaction because it has reserves of nearly 240 million tonnes that will increase by nearly 65-75 million tonnes and that would be 30% accretion to its reserves and from that perspective it would be a good buying opportunity for Sesa Goa.
Dempo is a much diversified group based out of Goa, it has interest in sports and mining industry and also in publishing industry. It also runs an English news paper. The deal which is worth Rs 1,700-1,800 crore, this entire amount would be used to fuse various group companies, which includes Goa Carbon a listed company on the BSE. It also plans to infuse funds into mining assets, which it has in Maharashtra and Jharkhand. It will also infuse funds in its newspaper venture and also the Dempo Sports Club, which is into football —all these ventures would be requiring a lot of cash and the money would be used to infuse in these operations.
Goa’s largest industrial group Dempo is selling its Goan mining assets to Sesa Goa, which is a subsidiary of Vedanta group and Sterlite. Dempo has nearly 65-75 million tonnes of minable iron ore reserves in Goa spread over 1,800 hectares and 19 mining leases licenses there. All of this would be acquired by Sesa Goa for a value close to USD 350 million. The entire transaction would take some time to be completed.
source: MC
Sesa Goa will benefit from this transaction because it has reserves of nearly 240 million tonnes that will increase by nearly 65-75 million tonnes and that would be 30% accretion to its reserves and from that perspective it would be a good buying opportunity for Sesa Goa.
Dempo is a much diversified group based out of Goa, it has interest in sports and mining industry and also in publishing industry. It also runs an English news paper. The deal which is worth Rs 1,700-1,800 crore, this entire amount would be used to fuse various group companies, which includes Goa Carbon a listed company on the BSE. It also plans to infuse funds into mining assets, which it has in Maharashtra and Jharkhand. It will also infuse funds in its newspaper venture and also the Dempo Sports Club, which is into football —all these ventures would be requiring a lot of cash and the money would be used to infuse in these operations.
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