State-run miner Coal India (CIL) will hire merchant bankers to carry out due financial diligence for acquiring equity stakes in identified mines and companies in Australia as part of its plan to meet the growing dry fuel demand in the country. In a notice inviting proposals from investment bankers, CIL said it has identified coal assets in Australia for acquiring equity stakes along with offtake rights in an asset or a company.
“CIL intends to avail the services of internationally reputed merchant banker/investment banker to carry out financial due diligence and render transaction advisory services with respect acquisition of stakes along with offtake rights in a coal asset in Australia held by a company for the purpose for arriving at an enterprise valuation of the company and framing of a non-binding offer initially and followed by a final and binding offer,” CIL said, adding that a tender is being floated for engagement of merchant banker/ investment banker for assisting it in acquiring coal assets in Australia.
It seems the world’s largest coal miner envisages insufficient domestic production in order to meet coking coal and high-grade fuel demand from various sectors.