Gujarat NRE Coke, a leading coking coal producer, which has offered to buy 90 per cent equity in Australian coal exploration firm Rey Resources is looking to complete the hostile takeover by the end of this year.
The deal estimated to be at Rs 53.21 crore will add thermal coal to the portfolio of the Indian firm.
"We are looking to close the deal in next five months or so. This will add thermal coal to our portfolio apart from increasing the liquidity in our Australian company," Gujarat NRE Coke CMD Arun Kumar Jagatramka said in an interview.
Gujarat NRE Minerals, the subsidiary of the Indian firm, had made a bid to acquire Rey Resources last month, which the target company had termed as an "unsolicited" move and decided to oppose it.
The domestic producer of met coke — primarily consumed by steel firms, is looking to buy the assets of the firm in an off-market "all share no cash" deal, for which the bidders' statement would be circulated to the shareholders of Rey Resources by next month.
Gujarat NRE Minerals (GNM) already holds about 16.64 per cent stake in the Australian entity. It has offered one GNM share against every five shares of the target firm. The Indian firm is eyeing the rich coal reserves of the Australian firm.