Sesa Goa acquires remaining stake of Western Cluster

published 21 December 2012

Sesa Goa, a subsidiary of FSTE 100 company Vedanta Resources plc, is the sole owner of Liberia's Western Cluster after acquiring the remaining stake from Minerals and Mining, Delware.

The iron-ore producer and exporter has purchased 49% of the outstanding common shares of Western Cluster for a cash consideration of $33.5m.

"Western Cluster is a logical and strategic fit with Sesa's existing iron ore business and is expected to create significant long term value for all stakeholders," Vedanta said in a release Friday.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

The company said exploration activities were progressing well, having last month completed more than 42,000 metres of drilling.

Sesa Goa is India's largest producer and exporter of iron ore in the private sector and Vedanta said it believed it was on course to becoming one of the top four in the world.

Vedanta shares dropped 2.16% to 1,130.00p at 09:23 Friday.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.