ET reported that Vedanta group firm Sesa Goa will acquire 100% stake in Goa Energy from Videocon Industries and other shareholders for INR 53.72 crore.

In a regulatory filing the iron ore miner said that it has signed a definitive share purchase agreement with the shareholders for the all cash deal.

The agreement includes taking over an existing debt of INR 47.28 crore of Goa Energy, which owns and operates a 30 MW waste heat recovery power plant in Goa.

The filing said “This agreement is subject to certain conditions precedent including approvals from the lenders and power purchasers.”

It added that the acquisition will be funded by internal cash of Sesa Goa.

It also said “The acquisition will enable Sesa Goa to exploit synergies with the pig iron and coke making operations at Amona, Goa and to secure further cost reduction on its own power requirements.”

Sesa Goa has a 0.28 million tonnes per annum metallurgical coke plant and 0.25 million tonnes per annum pig iron plant in Goa. Besides this, the company also has operations in Karnataka and in 2010-11, it had produced over 18 million tonnes of iron ore.

(Sourced from Economic Times)