Posted on August 10, 2017
Mercator Ltd is looking to raise $300 million, or about Rs 1,910 crore, by selling its coal assets in Indonesia and Mozambique, and selling stake in its dredging division to bulge bracket private equity funds, to build a war chest for future growth.
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 -for which Mercator plans to bid jointly with private equity majors -is the largest dredging company in the country and the only public sector enterprise in the sector with a fleet of 19 dredgers.
When contacted, Mercator, KKR, Blackstone and Mercator declined to comment. A mail seeking comments from Fairfax remained unanswered as of press time on Tuesday .
Founded in 1983, Mercator is a diversified conglomerate with interests in shipping, logistics, dredging and coal.
Mercator acquired coal assets in Mozambique in 2008-09 and bought Indonesian assets in 2011. It has 50% participatory interest three coal blocks in Indonesia’s East Kalimanthan region and owns the allied infrastructure facilities, while the Mozambique assets is yet to start commercial operations. The company has decided to gradually step down from coal as it was not generating expected returns.
Source: The Economic TimesMercator
