However, a regulatory filing made by JSPL
to the Competition Authority to Botswana revealed the proposed acquisition of 97.44 per cent of the issued share capital in Jindal BVI Ltd (“Jindal BVI”) from, Jindal Steel & Power (Mauritius) Limited by Maatla Energy Limited (“Maatla Energy”).
Business Standard has reviewed the copy of the filing.
Further to the queries regarding use of the proceeds of the sale, the company’s spokesperson said, as part of its “International Portfolio Rationalisation plan”, renewed focus has been brought to the mines and minerals assets across Australia, Asia and Africa.
“The assets are being rationalised and monetised keeping in view their long-term viability, the raw material security for JSPL
and the profitability of each of these businesses. The Group has been combing each asset, with a view of either exiting it or building it, to add to the bottom-line,” said the spokesperson.
Jindal Africa, a subsidiary of JSPL, bought the Botswana coal mine from CIC Energy for $116 million inn 2012, as part of its global expansion. The project plan also included setting up a 1,200-Mw power plant in the area. The company has investment and business ventures in other Southern African markets as well, such as Mozambique, Namibia, Zambia, Tanzania and Madagascar. However, with rising debt and global slowdown in the coal and steel market over the past few years, JSPL is selling off its international ventures to reduce its debt burden.
Maatla Energy, which is now buying the project from JSPL, is a Botswana-based diversified group in the energy sector, with coal mining being its core business.