Sesa Goa acquires remaining stake in Liberia-based WCL

Sesa Goa acquires remaining stake in Liberia-based WCLLiberia-based Western Cluster Ltd (WCL) has become a wholly-owned subsidiary of Vedanta Resources iron ore mining arm Sesa Goa as it acquired the remaining 49 per cent stake in the company for $33.5 million (Rs 185 crore).

Sesa Goa had purchased a 51 per cent stake in WCL in 2011 for $90 million (Rs 411 crore).

Sesa Goa said that WCL was a logical as well as strategic fit with its existing iron ore business. The iron ore mining arm of London-based Vedanta Resources also expressed hope that the deal would create noteworthy long-term value for all of its stakeholders.

Announcing the deal, the company said in a statement, "WCL is expected to create significant long-term value for all stakeholders."

The deal will provide Sesa Goa with much-required access to a huge resource, though it is still under developmental phase.

The WCL project comprises development of iron ore deposits, essential transportation and shipping infrastructure for iron ore exports. This company has iron ore reserves of around 1 billion tonnes, of which 330 million tonnes are recoverable.

After hitting a recent low of Rs 181.15 a share on December 13, stock in Sesa Goa rallied 10.04 per cent in five trading sessions to Rs 199.35 a share on Thursday, December 20.