The investment agreement, signed in June 2010, provides for Olympus Capital to make a $300 million investment in the Coal Special Purpose Vehicles (SPVs), Bhira Investment Limited and Bhivpuri Investment Limited, two wholly-owned subsidiaries of Tata Power that hold its interests in Kaltim Prima Coal (KPC) and Arutmin, two of Indonesia’s largest export coal mines.
"Olympus Capital strongly rebuts certain misstatements that appeared in recent news reports that the transaction was called off due to an inability on the part of Olympus Capital to fulfill certain pre-conditions to the investment agreement. So far as Olympus is concerned, it had complied in full with its obligations under the investment agreement and was prepared to close the transaction," the private equity firm said Tuesday (Jan 18).
Tata Power controls 25% shares in both Kaltim Prima Coal and Arutmin Indonesia, while the balance controlled by Bumi Resources (BUMI).
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