MSPL plans IPO to fund iron ore mine buyouts

MSPL plans IPO to fund iron ore mine buyouts

Iron ore miner MSPL Ltd. is planning an initial public offering to fund iron ore mine takeovers and buyouts of iron ore mining companies in India and abroad, a senior official said.

“We are interested in buyouts of good firms in India and abroad,” Narendrakumar Baldota, chairman and managing director, told Reuters on Thursday.

The company has bid for lease rights of five iron ore mining sites in the southern state of Karnataka, he said.

“For big takeovers, we will need the money …But for small ones we have cash,” Baldota said. However, he refused to give details on the initial offering, saying a decision will be taken by the end of this month.

MSPL, which has three mines in Karnataka, was interested in picking up Japan’s Mitsui & Co.’s 51 percent stake in Sesa Goa Ltd. , Baldota said.

Last month, the Hindustan Times newspaper reported Arcelor Mittal , the world’s largest steel firm, and local firms Sterlite Industries Ltd. and MSPL had submitted bids for the Sesa Goa stake.

MSPL, which exports 95 percent of its iron ore to China, expects to produce 6 million tonnes and report revenue of 12-15 billion rupees in the current year to March 2007.

The company plans to invest 2.5 billion rupees for expanding its wind power generation capacity by 50 megawatts by March. Its wind power generation capacity now 161 megawatts.

Source: Reuters

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