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Jindal Steel pulls out from 3 years long race to acquire Rocklands Richfield: Reports

20 Jun 2012 Evaluate

Jindal Steel & Power is likely to exit from a three-year long race to acquire the listed Australian coal explorer Rocklands Richfield, subsequent to an aggressive bid by China's Linyi Mining Group, as mentioned in some media reports.

The Chinese group on June 12, offered to acquire all of Rocklands Richfield's shares at Australian $0.52/ share, which is at a 73% premium to Jindal Steel's publicly stated offer of Australian $0.30 for the coal mining company that is estimated to have about 800 million tonnes of coal reserves in the Bowen Basin in Queensland.

Further, China's Linyi Mining Group has already entered into a pre-bid share pact to acquire about 20% equity from Rocklands chairman and majority shareholder’s Wu Pun Yan.

Earlier, in May, the company acquired a 9.25% stake in Australia’s Apollo Minerals for AUD 1 million (about Rs 5.30 crore). 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.

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