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Shareholders of Gujarat NRE Coking Coal, the Australian subsidiary of Gujarat NRE Coke on Wednesday approved Jindal Steel & Power Ltd proposal to acquire the majority stake of 53.62% in the former.
The deal with Jindal Steel will allow assured supply of coking coal to the company's units helping it to strengthen backward integration.
"The approval paves the way for JSPL to acquire 328.5 million new shares as 328.5 million unlisted transferable options (convertible into equity) in the Australia mining company,"said Gujarat NRE Coke in a notification to the BSE today,
With infusion of fresh equity into the company, the Jindal group's shareholding will first go up to 44.68% and upon exercising the options, as and when it is done by the Jindal group, the shareholding is slated to go up to 53.62%.
The equity shall be exercisable within a period of five years of the date of issue of the options, said the notification.
Shareholders of the Australian subsidiary have also approved two off-take agreements of coking coal, said Gujarat NRE Coke.
