Ruias-led Essar Group has bid $150 million for taking over an Australian coal firm, Rocklands Richfields, bettering an earlier offer from Jindal Steel and Power.
The Indian conglomerate has offered to buy the shares of the Australian company at 0.50 Australian dollar per piece, higher than Jindal's bid of AUD 0.42 a share.
Rocklands Richfield (RCI) today said that on October 4 it received a competing takeover proposal from Essar Mineral Resources, which is part of the Essar Group.
"Essar proposes to acquire 100 per cent of the shares in RCI at an offer price of AUD 0.50 cash per share through a scheme of arrangement or friendly takeover," the firm said in a filing to the Australian Stock Exchange.
Sources said Essar offer is valued at $150 million.
On September 22, RCI had announced that it had entered into a term sheet with Jindal Steel and Power regarding the Indian entity's proposal to acquire the Australian firm at a price of AUD 0.42 per share.
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RCI in the filing said the company would convene a board meeting to consider the merits of proposals from Essar and Jindal and decide which would be the superior one.
Asked about the rival bid, a Jindal Steel and Power spokesperson said, "At this point of time, we are maintaining a strict silence. We do not want to discuss anything further."
An Essar spokesperson said, "We are looking at growth opportunities. However, it is our policy not to comment on any specific issues."