Bloomberg quoted two people with knowledge of the matter said Gobi Coal and Energy Ltd owners are seeking to sell the Mongolian mining company for as much as USD 750 million.

One of the people who asked not to be identified because the sale process is private Gobi Coal whose owners include Beijing based private equity firm Origo Partners Plchas requested potential buyers submit initial bids by mid-October. The company is also pursuing the option of an initial public offering in Toronto.

The people said acquisitions in Mongolia have jumped this year as rising demand for the country resources prompted Banpu Pcl and Mongolian Mining Corp to buy assets there. Ulaanbaatar based Gobi Coal may fetch a higher valuation in a takeover than in an IPO.

According to the people Gobi Coal may be valued at USD 500 million to USD 750 million in an acquisition. Origo bought 21% of Gobi Coal in November 2009 in a deal that valued the company at about USD 71 million.

Mr Mo Munshi Gobi Coal chief executive officer didn’t respond to calls to his mobile phone seeking comment on the sale. Origo Partners Chief Financial Officer Mr Niklas Ponnert declined to comment.

The people said Gobi Coal hired Goldman Sachs Group Inc to help it find a buyer. Ms Connie Ling a Hong Kong based spokeswoman for Goldman Sachs declined to comment.

(Sourced from Bloomberg)