Naveen Jindal-controlled Jindal Steel & Power (JSPL) has made an open offer to acquire entire outstanding shares of Gujarat NRE Coking Coal, listed on the Australian Stock Exchange (ASX), for a price consideration of A$222 million ($231 million).
Further, the offer, which was made through Jindal Steel and Power (Australia) Pty, a wholly-owned subsidiary of Jindal Steel and Power (Mauritius), will be open from February 15 to March 15. JSPL, which already holds 19.48 per cent stake in Gujarat NRE, offered 20 Australian cents in cash for every share of Gujarat NRE Coking Coal, representing five per cent premium to the closing price of $0.19 on January 29.
The completion of this deal would give the company full control of two mines in the Australian state of New South Wales, helping it meet raw material needs as it seeks to lift capacity fourfold by 2015.
