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Friday 5/9/2008 Page: 3
INDIAN industrial conglomerate Tata is to gain a foothold in the Australian renewable energy market by taking an 11% stake in GeoDynamics. GeoDynamics wants to produce electricity from steam heated by hot rocks deep underground in South Australia. Tata offshoot Tata Power expects to gain a board seat, and GeoDynamics and Tata Power have agreed to review the potential of geothermal prospects outside Australia.
Tata Power will take an 11.4% stake in GeoDynamics for $44.1 million through a placement of 29.4 million fully paid ordinary shares at $1.50 a share. GeoDynamics managing director Gerry Grove-White said the funds raised from Tata Power's placement would strengthen GeoDynamics' balance sheet. "There are great synergistic opportunities for both the groups," Mr Grove-White said. The Tata group has about 100 companies and generates annual revenue of about $US80 billion ($A95.82 billion). GeoDynamics shares closed 44 higher at $1.40.
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