IGO to record impairment against nickel assets in strategy shift
IGO has been undertaking a strategic review in an attempt to revaluate its resources.
Bloomberg reports on Thursday that GVK Power & Infrastructure, a builder of airports and utilities controlled by Indian billionaire GV Krishna Reddy, is in talks to borrow as much as $850m to fund the purchase of two Hancock Prospecting coal mines according to people with knowledge of the negotiations.
GVK will use the money to pay Hancock $500m for equity in the mines and another $350m as compensation for costs incurred by the Australian company for running them.
Bloomberg reports:
“GVK is seeking overseas coal supplies to help fuel power plants at home after its shares fell 45 percent in Mumbai over the past year. The Indian utilities company will pay about $1.5 billion in total for Hancock’s Alpha Coal and Kevin’s Corner mines, with the balance to be paid in the next few years, two people familiar with the matter said April 6. GVK is in talks with investors including 3i Group Plc and Actis LLP about helping to finance the acquisition, one of the people said.”
