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Vinod Mathew

Mumbai , Feb. 4

STEEL Authority of India (SAIL), which is in the race for acquiring 25 per cent stake in Tahmoor Coal Pty Ltd, would have to shell out Rs 150 crore for the acquisition, if the recent deal in the shares of the Australian company is anything to go by.

Austral Coal Ltd, the parent company of Tahmoor, recently placed roughly 30 million shares at A$0.48 each to both existing and new investors. That works out to A$15 million or around Rs 50 crore.

The bid, according to sources, has attracted a number of Indian companies.

Since the 25 per cent stake that SAIL is interested in amounts to 90 million shares in Tahmoor Coal, the acquisition cost based on the latest benchmark valuation works out to Rs 150 crore.

The details on the latest placement of shares are part of the information notified by the company to the Australian Stock Exchange. The placement of equity came some 10 days after Austral invited global bids for offloading 25 per cent stake in its wholly-owned subsidiary.

Following the placement, Tahmoor Coal had an equity base of 272 million shares; and 90.5 million shares would be up for sale to SAIL or any of the other bidders.

It is understood that valuation for the coal mine is currently underway and will be completed this week, following which bids will be submitted by the companies that are eyeing a piece of the coal mining action in Australia.

According to Mr Arun Kumar Jagatramka, Vice-Chairman and Managing Director, Gujarat NRE Coke Ltd, the placement price was almost on par with what he paid for an adjoining coalmine. Gujarat NRE Coke had acquired 70 per cent stake in Bell Pack Colliery for A$8.5 million (Rs 28 crore) at 46 cents a share.

The Tahmoor colliery, an underground mine in New South Wales situated 70 km off Sydney, was commissioned in 1979. Austral Coal had raised A$31.25 million (around Rs 105 crore) in 1997 through an institutional placement and IPO to fund acquisition of Tahmoor colliery.

As of December 31, 2004, among the substantial shareholders of Austral Coal were Everzoom Associates Pvt Ltd (10.79 per cent), JP Morgan Chase & Co (8.72 per cent), Goldman Sachs JB Were Group (6.84 per cent) and National Australia Bank (6.55 per cent).

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