Global metal giant Vedanta Resources' group company Sesa Goa on Thursday announced acquisition of

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V S Dempo & Company's mining assets in Goa in an all-cash deal of Rs 1,750 crore.

Sesa Goa has signed a definitive share purchase agreement with V S Dempo & Company to acquire the company's mining assets.

"...Sesa has acquired all the outstanding common shares of VS Dempo & Co, which in turn also holds 100 per cent equity shares of Dempo Mining Corporation and 50 per cent equity shares of Goa Maritime for a total consideration of Rs 1,750 crore," the company said in a

statement.

It said the transaction will be funded by existing cash resources which as on March 31, 2009 stood at Rs 4,143 crore.

Commenting on the deal, which will be on debt-free basis, Vedanta chief Anil Agarwal said the "integration of Sesa and Dempo's operations will achieve great synergy".

Promoted by NRI billionaire Agarwal's Vedanta Resources, Sesa Goa is the country's largest exporter of iron ore in the private sector with annual sales volume pegged at about 15 million tonnes.

Post-acquisition, Sesa Goa will have the ownership right of Dempo Group's mining assets and related infrastructure like processing plants, barges, jetties, transhippers and loading capacities at Mormugoa port.

Sesa Goa said the acquisition of V S Dempo's mining assets is a logical and strategic fit with its existing iron ore business and is expected to create significant long-term value for all shareholders.

V S Dempo & Company with whom Sesa Goa entered into a share purchase deal on Thursday, has 19 mining leases spanned across 1,800 hectares in states of Maharashtra, Jharkhand and Goa. The company also has memoranda of understanding with governments of Jharkhand and Maharashtra for processing low grade iron ore into valuable concentrates.

Dempo's products mix include iron ore, calibrated ore lumps and low magnetite concentrate. In the year ended March 31, 2009, it produced 3.94 million tonnes of iron ore. The company's revenue in the last fiscal stood at 976 crore.