Jindal Steel and Power's (JSPL's) bid to acquire a majority stake in Gujarat Coke's Australian subsidiary failed to succeed, with the company managing to acquire only 31.49% stake by the end of its open offer. The offer, which was launched on February 15, was closed till March 28. Meanwhile, prior to launching the bid, JSPL, was a minority shareholder of Gujarat NRE Coking Coal with a 19.48% stake.
Naveen Jindal-controlled Jindal Steel & Power (JSPL), back in January 2013, 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).
However this evoked a sharp reaction from the promoters of the company, which suggested its shareholders to reject the bid on the grounds of offer not adequately reflecting future prospects of Gujarat NRE Coking Coal and its majority shareholders and promoters.
Meanwhile, ever since the announcement of JSPL's bid, Gujarat NRE Coking Coal's shares have been trading in and around the bid price of AUD 0.20 per share on the ASX. On Thursday (the last working day of the week), company shares had closed at AUD 0.20 apiece.
