India’s Jindal Steel and Power raises stake in Australian coking coal company

24 March 2013 (Last Updated March 24th, 2013 18:30)

India's leading steel maker Jindal Steel and Power has increasded its equity in Gujarat NRE Coking Coal, the Australian stock exchange-listed subsidiary of Gujarat NRE Coke.

NRE Wongawilli Colliery

India's leading steel maker Jindal Steel and Power has increased its equity in Gujarat NRE Coking Coal, the Australian stock exchange-listed subsidiary of Kolkata-based Gujarat NRE Coke.

Prior to the opening of the offer in February 2013, JSPL had a 19.48% stake in Gujarat NRE Coking Coal and by the end of last week JSPL's equity increased to 28.79%.

JSPL has also stated that its takeover offer will be extended to March 29.

The company plans to pay A$0.20 ($0.20) per each share that it does not already own in Gujarat NRE Coking Coal.

But in February, Gujarat urged its public shareholders to decline the offer as it undervalued the company and did not reflect its future prospects.

Gujarat NRE Coking Coal operates two hard coking coal mines in New South Wales with combined resources of more than 651 million tonnes and reserves totalling 125 million tonnes.

By 2020, JSPL plans to reach 20 MTPA of steel production and has been exploring ways to secure raw materials for its new facilities.

Apollo Minerals signed a deal with JSPL last week to split its iron ore assets into a new Australian Stock Exchange-listed firm, NewCo.

JSPL will acquire a majority interest in the new iron-ore focused firm by investing A$10m ($10.3m) through its Australian subsidiary Jindal Steel and Power.

Apollo has iron ore and coal mines in Mozambique, Australia, Indonesia and Botswana among others.


Image: Gujarat NRE Coking Coal's hard coking coal mine NRE Wongawilli Colliery in New South Wales. Photo: Gujarat NRE Coke Ltd.

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