After acquiring a hospital management company a few months ago, Abhay Soi-promoted Halcyon Finance and Capital Advisors has invested close to $200 million in mining space in two different transactions, along with a leading domestic mining company.
The mines acquired are in Goa and Karnataka, with total estimated iron ore reserves of around 115 million tonnes. When contacted, the company declined to name the partner or the mines acquired. Halcyon purchased rights for 20 per cent of the reserves with an option to convert the same to an equivalent stake in the SPV, used to acquire the assets.
Besides committing funds for these transactions, Halcyon also assisted the strategic partner in acquiring rights for two large mining blocks. The blocks are estimated to have iron ore reserves of close to 79 million tonnes and 35 million tonnes. The overall transaction size is pegged at close to $200 million.
No new government permission or clearance is required as the mines are already operational, the company said.
“It was an opportunity for us to partner with an exceptional group, led by a promoter whom we regard highly. Given the nature of the industry, we are fortunate to have a relationship with a group which is not only focused on value creation but is equally concerned about environmental conservation and integrity,” said Abhay Soi.
“Given the fragmentation and other challenges faced by the mining sector, we see a unique opportunity for consolidation within this space,” he added.
Recently, Halcyon acquired hospital management services firm Integrated Health and Healthcare Services India Pvt Ltd (IHHS) for $44.4 million (Rs 202 crore) through its Singapore-based subsidiary Infrahealth Pte Ltd.
IHHS is owned by Mauritius-based Integrated Health and Healthcare Services, which is in the business of developing & redeveloping, managing and operating healthcare facilities in India. It currently manages Delhi-based Dr B L Kapur Memorial Hospital.