Agritrade Resources to buy SKS Power Generation

Agritrade Resources Ltd, a Singapore-headquartered and Hong Kong-listed company, has agreed to acquire SKS Power Generation (Chhattisgarh) Ltd as well as some of its loans for a total of Rs 2,170 crore ($300 million). Agritrade, with presence mainly in mining, shipping and energy, said in a statement that the proposed acquisition represents a diversification opportunity for the company to expand into thermal power. SKS Power Generation (Chhattisgarh) Ltd is presently owned by SKS Ispat and Power Ltd, which has an integrated steel plant at Raipur in Chhattisgarh of yearly capacity 600,000 tonnes. The lenders of SKS Power, which include State Bank of India, L&T Infrastructure Finance Company and PTC (India) Financial Services, had selected Agritrade Resources as the successful bidder. Agritrade Resources intends to fund the acquisition through internal resources and a loan from a third party.