Home » JSPL plans to raise holding in Gujarat NRE’s Aussie unit

JSPL plans to raise holding in Gujarat NRE’s Aussie unit

JSPL plans to raise holding in Gujarat NRE’s Aussie unit

Jindal Steel and Power (JSPL), which holds 19.48 per cent stake in Gujarat NRE Coking Coal, the Australian unit of Gujarat NRE Coke, plans to raise its holding in order to comply with the regulation of the Australian stock exchange.

According to the regulation, the company has to go to the public to raise its stake to over 20 per cent. Recently, JSPL announced a Rs 1,200-crore bid to take over the Australian unit for A$0.2 a share. But the firm clarified that it was not a hostile takeover and the firm is not prepared to raise the offer price.

Gujarat NRE has two coking coal mines in Australia, with estimated reserves of 125 million tonne (mn t) and 650 mn t each.

According to press reports, JSPL, which started buying stake in Gujarat NRE Coking Coal in 2012, wants to raise its holding in order to secure coking coal supplies for its steel plants in India.

If Gujarat NRE shareholders agree to the deal, at its offer price, JSPL would have to spend $222 million, or Rs 1,200 crore, for the acquisition.

It may be recalled that JSPL failed to acquire another Australian coking coal miner, Rocklands Richfield earlier. The company wanted to acquire about 50 per cent stake in Rocklands. However, even after its second attempt, it managed to acquire only 27.29 per cent stake.

Leave a Reply