3 Indian cos shortlisted for Oz coal firm Reuters | May 24, 2011, 06.10am IST
Aditya Birla, JSW Steel and Jindal Steel & Power are among firms shortlisted to bid for Australian coal explorer Bandanna Energy in a potential billion-dollar-plus sale, sources said.
A number of Chinese firms were also in the race, the sources familiar with the deal told Reuters.
One source said China's CITIC Resources Holdings and a subsidiary of China Coal had made it to the second round of the sale process.
Peabody Energy, Xstrata and Wesfarmers also expressed interest, but it was unclear whether their bids had advanced, the source said. Another source said the process was expected to be completed by the end of June.
Spokesmen for Bandanna and Wesfarmers declined to comment. JSW said it did not comment on speculation, while a spokeswoman for Mumbai-based Aditya Birla declined comment. Officials at Jindal Steel were unavailable for comment.
Bandanna, which holds coal exploration permits in the Bowen and Galilee basins in Queensland, Australia, last year appointed UBS to advise on a strategic review of its funding requirements. It said this could involve the partial or total sale of its assets.
Indian steel, power and coal firms have been scouting for coal assets overseas to supply power plants at home, looking to benefit from the energy-hungry nation's aim to halve its near-14% peak-hour power deficit within two years.
Australia's Linc Energy last year agreed to sell its Galilee coal project to Adani Enterprises in a cash and royalty deal worth $2.7 billion, marking the largest single mine investment by an Indian firm in Australia.
Bandanna could fetch between A$800 million and A$1.5 billion ($853 million-$1.6 billion), say analysts and media reports.
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