Mercator Ltd. to raise $300 million via coal asset sales
Mercator Ltd is looking to raise $300 million, by selling its coal assets in Indonesia and Mozambique, and selling stake in its dredging division. The diversified marine operator is in talks with Canadian billionaire Prem Watsa-promoted Fairfax Financial Holdings and US private equity giants KKR and Blackstone to make a joint bid for state-run Dredging Corporation of India, in which the government is looking to sell its entire 74% stake.
Indian and Chinese players are in the fray to buy Mercator’s 50% stake in three East Kalimanthan coal assets in Indonesia and one asset in Mozambique. Mercator expects divestment to fetch Rs 1,200-1,500 crore. Nomura is helping the company sell coal assets. Mumbai-based investment bank Singhi Advisors is running a process for Mercator to raise funds for its dredging unit.