DNA reported that the battle between steelmakers Jindal Steel and Power Limited and Essar Steel to take over Australian coal explorer Rocklands Richfield has intensified with the former increasing its stake through open market purchases.
JSPL, which bought 10.49% stake in Rocklands between September 23 and October 2, has bought an additional 2.26% stake or 6.67 million shares at AUD 0.42 per share through its Mauritius based subsidiary. Its now holds a 12.75% stake in Rockland.
Essar Steel joined the race on October 7 when it offered to buy all shares of the Aussie company for AUD 0.50 a share, valuing the miner at AUD 150 million. Essar offer is at a premium of 19% to that of JSPL however its proposal is conditional on it acquiring 60% of Rocklands.
The Sydney based Rocklands' basic activity is exploration of coal. It controls a series of high grade coking coal deposits in the Bowen Basin of Queensland. The company also has a 480,000 tonne per annum coking coal plant located in eastern China.
Mr Benny Wu chairman of Rockland had said on October 7th 2009 that “We acknowledge receipt of the Essar proposal. We are indeed very honored that two of the largest Indian groups of companies are interested in taking over Rocklands.”
Both of the Indian steelmakers need to get the approvals from Australia's Foreign Investment Review Board, Rocklands shareholders and an Australian court. If any of the two steelmakers pull out of the race after getting the approval to conduct due diligence, it will have pay AUD 1.5 million as break away fee.
(Sourced from http://www.steelguru.com/news/index/2009/10/10/MTE1NDA0/JSPL_takes_2pct_more_of_Rocklands.html)
Friday, October 9, 2009
JSPL takes 2pct more of Rocklands
0 comments:
Post a Comment