The Hindu Business Line : Gujarat NRE arm plans to take over Australia’s Rey Resources

Kolkata, June 4 Gujarat NRE Minerals Ltd (GNM), the Australian subsidiary of Gujarat NRE Coke Ltd, has made an off-market takeover bid on Rey Resources Ltd (RRL) in Australia.

RRL has exploratory thermal coal of an estimated reserve of 500 million tonne and coal-bed methane assets in Australia and exploratory base metal assets in South America.

Gujarat NRE group is currently the single largest participatory stake of 17 per cent in RRL.

According to a press release issued by the group here today, GNM has now expressed its intention to acquire all the 153 million issued shares of RRL through a cash less share swap arrangement.

According to a GNM spokesperson, the offer includes issue of one share of GNM for every five shares of RRL.

Thermal coal, CBM assets

“The implied offer price represents a substantial premium of 40.6 per cent on Rey’s last trading price and 44.2 per cent on Rey’s five-day VWAP (volume weighted average price),” the release adds.

“The takeover would offer us access to thermal coal and CBM assets in addition to our existing coking coal mines in Australia. Similarly RRL is in need of funds for developing those exploratory assets,” the official said.

“Initial estimates suggest that RRL requires approximately (Australian) $25 million (about Rs 96 crore at the current exchange rate) for asset development,” the official said.

Gujarat NRE Coke is a major met coke producer in India having production capacity of over one million tonne. The company is expanding its met coke production capacity.

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