Australia’s richest woman Gina Rinehart is reportedly close to a deal that will see the resources and media mogul’s Hancock Coal sell assets to Indian power giant GVK, but has also raised eyebrows for offering to fly members of Parliament to the wedding of a GVK management family member.
While Fairfax has reported Hancock is close to a multi-billion dollar deal that would see it sell off the Tad’s Corner and Kevin’s Corner projects, it has also said MPs were offered the opportunity by Rinehart to attend the wedding of Mallika Reddy, granddaughter of GVK chairman GVK Reddy.
Various members of Parliament have confirmed the invitation took place, although some have said they did not attend.
Senator Barnaby Joyce said in the report Rinehart invited members of both sides of politics to attend. The report also claims Resources minister Martin Ferguson was invited, but turned down the offer.
”I work closely with these companies on a professional level. While valuing my relationship with them I did not think it appropriate to attend the wedding,” he said. However, the report also says Joyce accepted the offer in order to build stronger links with Indian business.
The wedding was attended by more than 7,000 people, including powerful business leaders and politicians.
Such a trip would have bolstered Rinehart’s chances in sealing a deal between the two companies. Indeed, a separate report from Indian publications confirm Hancock Coal and GVK are close to a $US2.4 billion deal that would see Tad’s Corner and Kevan’s Corner projects sold off.
However, Rinehart has previously said that she would not sell controlling stakes in the projects.
”Despite various media speculation, the Hancock companies will continue to hold equity in our major Queensland coal projects,” she said last month.
However, the report also points out it could be some time before any sale is finalised, and points out the current terms would see $US1.25 billion paid up front with the rest to come instalments.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
