GVK, Lanco front runners for Griffin coal assets

Indian power companies, GVK Power and Lanco Infratech are building a war chest for the acquisition of Griffin’s coal assets in Australia, Sources with direct knowledge of the deal said. Sources suggest both the companies have tied up funds amounting to $1 billion for the deal. Adani Power, Reliance Power had earlier shown interest in the deal.

Griffin’s coal reserves are estimated to be around 250 million tonnes, the West Australia based company produces 5 million tonnes of coal per annum. Along with the coal assets, power generation units with 500 MW capacity are also up for sale.

Sources say, the bids are expected to open on November 5. GVK and Lanco will also have to fight it out with several Chinese and Japanese players also in the fray to buy Griffin’s assets. The deal is expected to be closed within two months. Griffin Group has a huge debt burden of $2 billion and is liquidating the assets to pay the lenders.

Both, GVK Power and Lanco Infratech did not respond to an e-mail query sent out to the top management on the news development.