Indian consortium ICVL to appoint Citigroup for Riversdale due diligence

International Coal Ventures (ICVL), a consortium of five state-run firms in India proposes will appoint Citigroup to conduct a due diligence on Africa-focused coal miner Riversdale.

The adviser is expected to submit its report in two weeks and ICVL will take decision on its final bid after that, a member of the consortium said today.

"We are inclined towards bidding (for a stake in Riversdale) subject to the outcome of due diligence," the source said.

The group will take a decision on a bid after the adviser gives its report in two weeks, C S Verma, chairman of Steel Authority of India, one of the consortium members, told reporters.

The Indian consortium comprising NTPC, SAIL, NMDC, Coal India and Rashtriya Ispat Nigam Ltd, all state-owned enterprises, is planning to trump a $3.9 billion bid by Anglo-Australian miner Rio Tinto to acquire Riversdale in an agreed deal.
 
Earlier reports had quoted Rana Som, chairman-cum-managing director of iron ore miner NMDC that the bid amount may cross the authorised limit and may require a review.

Som had also indicated the company was interested in picking up a 10 per cent stake in Riversdale. However, he now the deal would involve a lot of investment to develop the infrastructure.

ICVL was formed on 20 May 2009, with an initial authorised capital of Rs10,000 crore (over $2 billion). SAIL and CIL each hold 28 per cent share and RINL, NMDC and NTPC, 14 per cent each.