Optimum Coal says Glencore interested in acquiring it

Thu Sep 1, 2011

* Glencore's biggest target since its listing
* Asian giants hungry for S.African coal

JOHANNESBURG, SEPT 1 - South Africa's Optimum Coal confirmed on Thursday a consortium including a unit of commodity trading giant Glencore , and prominent local politician-turned tycoon Cyril Ramaphosa was interested in buying it for about $1 billion.

The move on Optimum, South Africa's sixth-largest coal producer, is seen as showing Glencore's appetite for deals in volatile equity and commodity markets, which it has said will produce bargains.

"The proposed transaction would include a general offer to the shareholders of Optimum for a cash consideration of 34 rand per share," Optimum said in a statement.

That would value it at around $1 billion and be a premium of 1.25 rand per share on the 32.75 rand its stock price was fetching in early Thursday trading.

Optimum said the consortium includes Piruto B.V., a wholly owned subsidiary of Glencore, and Lexshell 849 Investments Limited, a company owned by Ramaphosa.

Sources last week said Glencore and Ramaphosa were stalking Optimum, and on Monday, the South African company said Piruto B.V. had taken a 14.1 percent stake in it.

This would be Glencore's most significant purchase since its record listing, when it sacrificed its fiercely protected privacy to gain the balance sheet firepower for acquisitions.

Glencore's deep pockets and Ramaphosa's influence would make for a formidable bid that could nullify any opposition arising from shareholders, some of whom may be reluctant to see the trader extend its reach in South Africa.

Optimum, a mid-size producer has export capacity and reserves that make it attractive prey for big foreign companies hoping to capitalise on Indian and Chinese demand.

Finland's Outokumpu may dump nuclear project-report

Fri Apr 1, 2011 3:01am GMT

HELSINKI, April 1 (Reuters) - A plan by Fennovoima to build a nuclear reactor in Finland could be at risk of falling through as Outokumpu (OUT1V.HE: Quote), the company's biggest industrial owner, eyes other nuclear stakes instead, a Finnish paper reported.

Steelmaker Outokumpu has held talks with forestry group UPM-Kymmene (UPM1V.HE: Quote) about acquiring some of its shares in other nuclear projects in the country, Tekniikka & Talous newspaper reported on Friday, quoting unnamed industry sources.

UPM-Kymmene owns part of utility company Teollisuuden Voima (TVO), which is currently building the much-delayed Olkiluoto 3 reactor in Western Finland, and holds a principle permit for its next reactor, Olkiluoto 4.

The Finnish paper cited sources as saying Outokumpu may be interested in a smaller, cheaper cut of Olkiluoto 4 over a stake in new nuclear company Fennovoima.

UPM-Kymmene's chief financial officer, Tapio Korpeinen, said in the paper his company's forestry plants would not need as much electricity as they are set to have in TVO, but declined to say if UPM would reduce its stake.

Outokumpu, which owns about 10 percent of Fennovoima and has appeared as its strongest promoter, declined to comment on the report.

Fennovoima expects its plant to cost 4 billion to 6 billion euros ($5.69 billion-$8.53 billion). It's biggest owner, German utility E.ON (EONGn.DE: Quote), said earlier this week it will seek to incorporate into future projects what has been learned from Japan's Fukushima nuclear disaster, but assured it remained committed to Fennovoima.

Last July, the Finnish parliament gave permission to TVO and the Fennovoima consortium to construct new nuclear reactors, taking Finland's total reactors to seven.

Fennovoima has not yet chosen a location or a supplier for its reactor. (Reporting by Jussi Rosendahl; Editing by Steve Orlofsky,sourced Reuters)

GVK, JSW unit may submit fresh bids for Hancock's coal assets

4 Mar,2011
By Sameer Hashmi,ET

JSW Energy and GVK Power and Infrastructure will have to submit fresh bids for acquiring two coal assets put on the block by Hancock Coal as the Australian firm now wants joint bids for the assets, sources said.

Hancock Coal is selling Kevin's Corner and Alpha Coal, both located in Australia's Queensland province, as it expects good valuation for the assets.

Some Chinese and Japanese power generation companies are also among the shortlisted bidders.

The two Indian firms, however, declined to comment on the development.

"We have been looking at various assets and Hancock is one of them," GVK's vice chairman Sanjay Reddy told ET NOW. "Unfortunately we are subject to confidentiality with Hancock, so I won't be able to comment."

GVK has been scouting for coal mines for the past two years as it wants to secure fuel for its power projects, but it has so far failed to clinch a single deal due to weak financial bids.

"For us, at this point of time, CIC is the main focus," JSW Energy's joint managing director and chief executive L K Gupta said.

Sajjan Jindal-led JSW Energy is in the process of buying out UK-based power and coal mining firm CIC Energy Corporation. The deal was supposed to close on February 28, but the date for completing the acquisition was extended after CIC announced a dispute with GCL Botswana.

Hancock is expected to finalise one buyer by the end of this month. Kevin's Corner and Alpha Coal are located close to the mine that Adani Enterprises acquired last year from Linc Energy.

"The valuation could go over $4 billion considering the asset size," a source said. "There is a possibility that some players may exit the race since the valuations is so high." The two mines have an estimated 7.9 billion tonnes of thermal coal, according to the company's website.

Tags: Australia Queensland, Chinese power company, Japanese power co., bidders,

New York-based Upstate Shredding acquires Hazleton-based scrap company

Monday, 07 February 2011 11:59:02 (GMT+2)
On February 5, New York, US-based metal service center and recycler Upstate Shredding LLC - Ben Weitsman & Son, Inc. announced a purchase agreement to acquire Brenner Recycling, Inc., a retail scrap metal and recycling company located in the City of Hazleton, Pennsylvania. According to an official statement, the all-cash transaction is scheduled for closing on April 1 and key Brenner executives and all employees will continue in their positions. The other details of the planned acquisition were not disclosed. Brenner, a family-owned business in operation since 1925, grew from a used auto parts yard to become the largest scrap metal, paper and cardboard recycler in the greater Hazleton area, which is approximately a two-hour drive from Philadelphia and New York City. Since December 2009, Upstate has acquired scrap metal companies in Syracuse, Jamestown and Liberty, New York and in Towanda, Pennsylvania to add to its operations in Binghamton, Ithaca and Owego, New York. Upstate Shredding LLC - Ben Weitsman & Son, Inc. is the largest privatel- owned scrap metal processor and recycling center on the east coast of the US.
Tags: scrap , raw mat , USA , North America , steelmaking , M&A
(Sourced:steelorbis)

India state group submits bid for Mongolia coal asset

Thu Feb 3, 2011 8:38 am GMT
NEW DELHI(Reuters) - India's International Coal Ventures (ICVL) consortium has submitted a bid for buying a coal asset in Mongolia, an official said on Thursday, to meet rising demand for the key raw material in Asia's third-largest economy.
Ajay Mathur, nodal officer for ICVL, also told reporters the consortium was hopeful of acquiring two to three coal assets in Australia and Indonesia this year.

The state consortium comprises of utility NTPC (NTPC.BO: Quote), Steel Authority of India Ltd (SAIL.BO: Quote), iron ore miner NMDC (NMDC.BO: Quote), Coal India (COAL.BO: Quote) and Rashtriya Ispat Nigam Ltd.
Last month, it decided not to counter Rio Tinto's $3.9 billion bid for Australian coal miner Riversdale (RIV.AX: Quote). (Reporting by Ruchira Singh, sourced:Reuters)