Gujarat NRE Coking Coal’s board has recommended the company’s shareholders to refuse Jindal Steel and Power’s all-cash Australian Dollar 221.61 million (Rs 1,200 crore) takeover bid, saying the offer does not adequately reflect future prospects.
Jindal Steel and Power (JSPL), which has 19.48% stake in Gujarat NRE Coking Coal, made an all-cash offer to buy out the Australian subsidiary of Kolkata-based Gujarat NRE Coke. JSPL has made an unconditional offer to acquire remaining stake of the company at Australian dollar (AUD) 0.20 per share via on-market bid. The offer is at a premium of 5% over the closing share price of Gujarat NRE Coking Coal shares on January 29.
JSPL plans to acquire shares in Gujarat NRE Coking Coal through its subsidiary Jindal Steel and Power (Australia) Pty. The offer launched on February 15 will remain open till March 15, Jindal Steel and Power, early in February had claimed the takeover not a hostile one, clearly stating its intent of not upping its offer price
