Amarchand Minter Ellison and Clifford Chance advise on GVKs acquisition of Australias Hancock Coal for 126 billion

Indian Infrastructure giant GVK Group has acquired majority stake in Australian Hancock Group’s coal mines, along with related infrastructure assets for $1.26 billion..The Mumbai office of Amarchand Mangaldas advised GVK with a team led by Partner L. Viswanathan..Minter Ellison acted as Australian legal advisor for GVK with a team led by Partners Sam MacGibbon, Paul Wentworth and Allison Warburton..Clifford Chance advised Hancock with a team led by Partners Ian Cochrane and Jon Carson..The Hyderabad-based group acquired up to 79 percent in the Alpha and Alpha West coal projects in the Galilee Basin of Queensland. It also acquired the Kevin’s Corner coal project, adjacent to Alpha, and the rail and port project connecting these coal projects to the port of Abbot Point and Abbot Point T3 expansion project, whilst retaining some tonnage capacity for the Hancock Group..GVK will pay the $1.26 billion in a phased manner, with $500 million now. Of the balance, $200 million will be paid within a year from closing and $560 million on financial close for the project (anticipated to be in 2012), but in any event, no later than three years from closing, according to Business Standard..Minter Ellison lead Partner Sam MacGibbon in a statement said, “It has been a unique opportunity for our team at Minter Ellison to work with GVK on this very significant transaction. GVK has shown that its reputation as one of India’s leading infrastructure companies is well deserved, and it is a tribute to the outstanding commitment and capability of the GVK team and its advisers that the transaction has reached this stage. We look forward to working with GVK to achieve the successful completion of the transaction.”.GVK’s investment will involve not only the initial purchase consideration of approximately $1.26 billion, primarily raised through debt facilities with commercial banks, but also the billions of dollars of additional funding required to develop the projects (total investment in phase 1 is estimated at $10 billion)..Hancock’s Galilee Basin projects represent one of the largest integrated coal development projects in the world, and will supply approximately 84 million tonnes per annum of thermal coal to meet the demands of the Asian market..The first phase of production, scheduled to start in 2014, is expectedto bring in more than 30 million tonnes per year of thermal coal, according to VCCircle..India holds 10 percent of the world’s coal reserves, but local supplies are falling short as the country builds more power plants and as domestic coal projects run into environmental and land acquisition delays.