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Gujarat NRE's Australia arm bids for control addl 500 MT of coal resources

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Announcement Corporate
Last Updated : Jan 20 2013 | 9:33 PM IST

Gujarat NRE Minerals (GNM), an Australian Subsidiary of Gujarat NRE Coke (GNCL), have announced its intention to make an off market takeover offer to acquire all the issued shares in Rey Resources (REY).   

Highlights of the Offer are -

* The Implied Offer Price represents a substantial premium of 40.6% on Rey’s last trading price and 44.2% on Rey’s 5 day VWAP

* One (1) GNM share for every five (5) REY shares, which values REY at A$0.09 per share based on Gujarat’s 5 day volume weighted average price (“VWAP”) (“Implied Offer Price”) on 2 June 2009

* Rey shareholders accepting GNM scrip will benefit from the combined group’s exposure to a pure play coal company with producing coking coal mines while maintaining exposure to Rey’s thermal coal exploration projects.

REY owns Coal, Oil and Gas Tenements covering large area in Canning Basin of Western Australia. REY has 500 million tonnes of coal resources that have excellent potential for medium to large scale development, as well as base metal properties in South America.   Arun Jagatramka, vice chairman and managing director of Gujarat NRE Coke said: “The takeover of REY provides an access to additional 500 Million Tonnes of thermal coal resources and coal gas methane and establish the Group as a complete coal resources company and enhance its overall value. GNM’s board is confident that putting the GNM assets together with the Rey assets and potentially realising the upside offered by the Combined Group, with its exposure to the Indian coal markets, will be a dramatic value driver for the shareholders of Rey and GNM.”

About the Company: Gujarat NRE Coke
Gujarat NRE Coke is the largest independent producer of Met Coke in India having production capacity of over 1 Million MT and has undertaken plans to set up plants for producing 1.25 Million MT in the States of Karnataka and Andhra Pradesh. It is the only Indian company with coking coal mines in Australia having more than 500 million tons of Metallurgical Coal with excellent coking properties. The company is set to emerge as one of the largest coking coal producers in Australia over the next few years. The coal mines are owned through its subsidiaries – Gujarat NRE Minerals Limited (ASX:GNM). Besides ownership of these coal mines, the company has done cornerstone investments in resource prospecting companies that are scouting for coal, gold, iron-ore and various other base metals. The company has set up wind mills with capacity for producing 87.5 MW wind power energy and is in the process of setting up power plants for generation of 60 MW through waste heat recovery process. It has also set up mini steel mill in Gujarat to recycle steel scraps using green wind energy to manufacture TMT Bars.

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First Published: Jun 04 2009 | 5:47 PM IST

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