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Minter Ellison and Clifford Chance act on billion dollar deal

Minter Ellison and Clifford Chance act on billion dollar deal

Minter Ellison has acted with lawyers from Clifford Chance and India on a US$1.26 billion mine, rail and port acquisition.India's leading infrastructure developer, GVK Power &…

Minter Ellison has acted with lawyers from Clifford Chance and India on a US$1.26 billion mine, rail and port acquisition.

India's leading infrastructure developer, GVK Power & Infrastructure, announced yesterday (19 September) it had acquired a major stake in three Australian coal mines and a rail and port project owned by Hancock Group.

Minters acted as Australian legal advisors to GVK with Sydney based energy and resource partners Sam MacGibbon and Paul Wentworth leading the firm's team, with Brisbane partner Allison Warburton.

Clifford Chance partners Ian Cochrane and Jon Carson led the team advising Hancock group, while Amarchand & Mangaldas & Suresh A. Shroff & Co. acted as Indian legal counsel for GVK.

The transaction, which is structured as a share acquisition, sees GVK acquire 79 per cent of Hancock's Alpha and Alpha West coal projects and 100 per cent of it's Kevin's Corner coal project.

GVK will pay $US 500 million ($488.2 million) initially, $US 200 million ($195.3 million) after one year, and the remainder on financial close of the project, which is expected in 2012.

The total investment in the first phase of the project is estimated at approximately $10 billion. This includes capital expenditure on the mines, rail line and port, but GVK's investment will also involve billions of dollars of additional funding required to develop the projects.

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