24/news/ _1_southern-africa-majority-stake-east-africa

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1 The Economic Times online Date September 24, 2013 Link 24/news/ _1_southern-africa-majority-stake-east-africa 'Indian private firms look for controlling stake in projects' 'Indian private firms look for controlling stake in projects Indian private companies lose out on contracts in Africa as they look for picking up majority stakes in the projects which acts as a deterrent, say South Africa-based industry consultants. "An Indian company would not consider an investment unless it can take up majority stake and that is where the talks fail," Keith Scott, Managing Director, MSA Group South Africa told. MSA Group is a specialist consultant to the mining industry. "We advise Indian companies to come and invest in Africa by picking up minority stakes in the projects instead of majority. These companies can even sign offtake agreements because that is a more workable model than coming and seeking majority stake," Scott said but declined to name the companies. When asked if this is a practice with the private or public sector firms, he said, "Mostly private firms because in case of state-run firms the governments are involved and it becomes a political issue." "If your core requirement is taking coal in order to run your power business in India why would you want to take control of a money asset in Africa... you don't know how to run that business," Robert Appelbaum, Head of South Asia, Webber Wentzel said during an interaction. Webber Wentzel, a South African legal firm is providing legal services to Indian companies such as Tata Power, Reliance Power, Jindal Steel & Power, JSW Steel etc. "We tell them that even if you have minority stake in a company you have a voice in the company," Appelbaum said. Indian power and steel companies are eyeing African countries like Mozambique, Botswana etc. as these countries have rich reserves of coal.

2 Country's largest thermal power generation firm NTPC is keen to acquire coal mines in South Africa and Mozambique. State-run Coal India has also shown interest in acquiring mines owned by the government of South Africa. Tata Power which already has presence in the African region in the form of a joint venture -- Cennergi -- with Exxaro. It is actively pursuing opportunities to acquire land in strategic markets in the country. Meanwhile, a lot of Indian companies are keen to explore the oil and gas sector in the African nations. "We have seen huge interest in the oil and gas space in Africa from Indian firms like ONGC, Cairn India etc," Manus Booysen, Partner Webber Wentzel said.

3 The Financial Express (PRINT) Date September 26, 2013 India turns to east Africa for minerals after China setback

4 The Financial Express (ONLINE) Date September 26, 2013 Link India turns to east Africa for minerals after China setback India turns to east Africa for minerals after China setback New Delhi Updated: Sep , 03:49 IST After being beaten by Chinese players in the quest for mineral assets in west Africa, Indian firms like state-owned ONGC, Oil India and private players such as RIL and Cairn have now set their eyes on the eastern part of the continent, which is fast emerging as a key supplier of minerals especially liquified natural gas ( LNG) and coal. Sources said Indian oil sector players are already scouting for investment opportunities in oil and gas sector in Mozambique and Tanazania. Power companies like Jindal Power and Tata Group are setting up power plants in countries like Botswana and Zambia. Webber Wentzel, a Johannesburg-based firm that provides legal and advisory services to foreign companies interested in investing in mineral sector in Africa, is quite upbeat on prospects of business from Indian companies. Indian companies should not miss out on investment opportunities in east Africa, said Robert Appelbaum, head of Webber Wentzel Group's South Asia division who, along with other senior executives of his firm, is currently on a visit to India to interact with companies interested in investing in Africa's mineral assets. He added that regulatory regimes in African countries have also become more transparent in recent years. The visiting held meetings with senior executives of oil and gas companies in Delhi on Monday and Tuesday and plan to interact with bankers from ICICI Bank and Yes Bank in Mumbai on Wednesday. West Africa has been the favourite hunting ground for Indian and Chinese oil firms looking for acquisition opportunities abroad. However, Chinese companies like Sinopec and CNPC have garnered most of the acquisition opportunities that came up in west African countries like Angola and Ghana. Sources said state-owned Gail and private company BG India are also looking for business opportunities in east African countries, sources said.

5 Press Trust of India (PTI) Date September 24, 2013 'Indian private firms look for controlling stake in projects' 'Indian private firms look for controlling stake in projects' New Delhi, Sep 24 (PTI) Indian private companies lose out on contracts in Africa as they look for picking up majority stakes in the projects which acts as a deterrent, say South Africa-based industry consultants. "An Indian company would not consider an investment unless it can take up majority stake and that is where the talks fail," Keith Scott, Managing Director, MSA Group South Africa told PTI. MSA Group is a specialist consultant to the mining industry. "We advise Indian companies to come and invest in Africa by picking up minority stakes in the projects instead of majority. These companies can even sign offtake agreements because that is a more workable model than coming and seeking majority stake," Scott said but declined to name the companies. When asked if this is a practice with the private or public sector firms, he said, "Mostly private firms because in case of state-run firms the governments are involved and it becomes a political issue." "If your core requirement is taking coal in order to run your power business in India why would you want to take control of a money asset in Africa... you don't know how to run that business," Robert Appelbaum, Head of South Asia, Webber Wentzel said during an interaction. Webber Wentzel, a South African legal firm is providing legal services to Indian companies such as Tata Power, Reliance Power, Jindal Steel & Power, JSW Steel etc. "We tell them that even if you have minority stake in a company you have a voice in the company," Appelbaum said. Indian power and steel companies are eyeing African countries like Mozambique, Botswana etc. as these countries have rich reserves of coal. Country's largest thermal power generation firm NTPC is keen to acquire coal mines in South Africa and Mozambique. State-run Coal India has also shown interest in acquiring mines owned by the government of South Africa. Tata Power which already has presence in the African region in the form of a joint venture -- Cennergi -- with Exxaro. It is actively pursuing opportunities to acquire land in strategic markets in the country.

6 Meanwhile, a lot of Indian companies are keen to explore the oil and gas sector in the African nations. "We have seen huge interest in the oil and gas space in Africa from Indian firms like ONGC, Cairn India etc," Manus Booysen, Partner Webber Wentzel said. He said that there is appetite for more business in Tanzania in East Africa and Botswana in Southern Africa. He added that the companies are eyeing Mozambique and Tanzania mainly for liquefied natural gas. PTI MEG MR ***