BS reported that Coal & Oil Group, which is setting up a INR 5,000 crore power plant in Tamil Nadu through Coastal Energen Pvt Ltd, is planning to buy back 15% of the stake from the Dubai based A W Rostamani Group. The company plans to sell the same to a financial institution in Europe.

While 15% in the company is held by the Rostamani Group, the rest is with Buhari and his family. The Rostamani Group has invested around INR 140 crore in the company.

Mr Ahmed AR Buhari founder president and chief executive officer said that “The process (buy back) will be over in the next two months and we have also initiated dialogue with financial institutions in Europe to sell the same. The value of the buyback is yet to be decided.”

The project is funded through an 80% debt and 20% equity. The equity portion is around INR 850 crore.

Coastal Energen Pvt Ltd is the power generating flagship company of the Coal and Oil Group. It is setting up a 1,200 MW Mutiara Thermal Power Plant in Tuticorin district with an investment of around INR 5,200 crore. The power plant is expected to go on full stream before March 2013. The company has already signed an agreement with TATA Power to sell a portion of the power produced.

(Sourced from BS)