Naveen Jindal-controlled Jindal Steel & Power (JSPL) has offered to buy Gujarat NRE Coking Coal at a price of A$222 million ($231 million). It already holds 19.48 per cent stake in Gujarat NRE.
JSPL offered 20 Australian cents in cash for every share of Gujarat NRE, 5.3% more than the close yesterday, the New Delhi-based company said today in a statement.
Gujarat NRE already supplies to JSPL. After the completion, this would give the company full control of two mines in the Australian state of New South Wales, helping it meet raw material needs as it seeks to lift capacity fourfold by 2015. Gujarat NRE has plans to double output to 5 million metric tons a year, according to an agency report.
JSPL operates coal mines in South Africa and Mozambique and agreed last year to buy Canada’s CIC Energy Corp. The company has hired Wilson HTM Investment Group for the transaction.
