Gujarat NRE Minerals (GNM), an Australian subsidiary of Gujarat NRE Coke has received no objection letter from the Australian government under the Foreign Acquisition and Takeovers Act. This has given further boost to the company's plans of an off market takeover to acquire entire shares of Rey Resources (REY) in Australia.
The shareholders will receive one share of GNM for every share of REY shares or 9 per cent for each REY share held by them.
REY owns coal, oil and gas tenements covering large area in Canning Basin of Western Australia. The company has 500 million tonnes of coal resources that have the potential for medium to large scale development.
Arun Kumar Jagatramka, chairman and managing director of Gujarat NRE Coke, said, "As such the takeover of REY will provide access to additional thermal coal resources and coal gas methan and establish the group as a complete coal resources company and enhance its overall value."
The company is a leading producer of Met Coke in the country with a production capacity of over 1 million tonne and has undertaken plans to set up plants for producing 1.25 million tonne in the states of Karnataka and Andhra Pradesh.
On the Bombay Stock Exchange, the company's shares traded at Rs 52.75, down 1.77 % at IST 1421.
