GVK Power and Infrastructure Ltd (GVKPIL) entered into various acquisition agreements with Hancock and some of its affiliated entities to acquire majority stake in two coal projects and one rail and port project, the company said. The acquisition will make GVK group a key player in the natural resources and energy sectors and may see the Australian businesswoman coming on board GVKPIL as nonexecutive director.

While GVK group is acquiring a 79% stake in the Alpha and Alpha West coal projects of the Hancock group in the Galilee basin in Queensland, it will be acquiring a 100% stake in Kevin’s Corner Coal project adjacent to Alpha and a 100% stake in the rail and port project connecting the coal mines to the port of Abbot Point and Abbot Point T3 expansion projects.

The funding for the acquisition has been tied up with banks. The transaction is expected to close and assets transferred in around two weeks, GVK group said. GVK will have to pay $500 million at closing of the deal, $200 million a year after closing and $560 million on financial closure of the project that is expected in 2012 but no later than three years of closing of the deal.

GVK group will be pumping in an investment of around $10 billion in the first phase of the project including capital expenditure on mines, rail line and port. Some analysts and bankers have expressed doubts whether GVK, which the market values at about $567 million, would be able to pull off such a large acquisition.