September 07, 2008

Mukand terminates coke purchase MoU

Mukand Limited announced that it has terminated a MoU signed for purchase of coke after it found, during the due diligence, that it is not in the interest of the company.

Mukund’s release said that "To reduce its dependence on procurement of coke from the market and to cut costs, it had, on October 10th 2007, signed a MoU with a party to purchase its coke manufacturing facilities in the state of Maharashtra with a capacity to produce 120,000 tonne per annum of metallurgical coke from coking coal."

The release added that “The MoU inter alia provided that the purchase was subject to due diligence to be carried out by Mukund Limited. After due diligence, it was found that aforesaid purchase was not in the interest of the Company to proceed further in the matter. Accordingly, said MoU has been terminated on November 28th 2007.

Mukund added that “It has acquired land near its plant at Ginigera in Karnataka to set up its own coke manufacturing facilities and hence there will be no financial impact on costs due to aforesaid termination of MoU.”