Adani Group's Mahan Energen To Merge With Stratatech Mineral Resources
The merger will enhance Mahan Energen's fuel security and operational efficiency.
The Adani Group's Mahan Energen Ltd. on Monday agreed to merge the coal miner Stratatech Mineral Resources Pvt. with itself as it seeks to improve its fuel security.
Stratatech Mineral Resources, a subsidiary of Adani Enterprises Ltd., had been allocated the Dhirauli Coal Mine. The mine has a capacity to produce 6.5 million tonne per annum of coal, the company said in a filing.
Mahan Energen, following the amalgamation, will be able to operate the Dhirauli Coal Mine in Madhya Pradesh as a captive coal mine—located close to Mahan Energen's thermal power plant—and will provide the company with an alternative source of supply to supplement its existing coal sourcing contracts. This will also help the company improve its cost efficiency.
The merger is subject to approval from shareholders of both companies and the National Company Law Tribunal.
Shares of Adani Power and Adani Enterprises closed 16.17% and 9.28% higher, respectively, as compared with a 3.25% advance in the NSE Nifty 50 on Monday.
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