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JSPL buys 9.25% stake in Australia’s Apollo Minerals for AUD 1 million

09 May 2012 Evaluate

Jindal Steel and Power (JSPL) has acquired a 9.25% stake in Australia’s Apollo Minerals for AUD 1 million (about Rs 5.30 crore). The deal will be completed this week and is not to subject to regulatory approvals from any Australian or state government agency.

Prior to the acquisition, the Naveen Jindal-led firm’s presence in Australia was limited to the coal sector with six exploration permits in Queensland and 27.27% stake in Rockland Richfield.

The Australian firm is an iron ore and minerals explorer and developer, having Commonwealth Hill project in South Australia and Mount Oscar Project in the Pilbara region of Western Australia.

According to the deal, JSPL’s Australian subsidiary Jindal Steel and Power Australia will acquire 25 million shares of Apollo at AUD 0.04 each. For this, a share subscription agreement was signed last week by both the firms.

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