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Jindal Steel & Power Ltd (JSPL) has taken over management control of Australian metallurgical coal miner Wollongong Coal Ltd (WCL) from the original promoters — Gujarat NRE Coke.
WCL, formerly Gujarat NRE Coking Coal Ltd (GNCCL), is now a subsidiary of JSPL.
Navin Jindal-controlled JSPL is investing A$45 million for around 45 per cent in the company.
It has changed the management team and Gujarat NRE Coke representatives have left the WCL board.
JSPL, which did not announce the take over, declined to comment on the development.
In an e-mail reply to Business Line , a JSPL spokesperson said that as the JSPL board would consider and approve annual accounts and consolidated financial statements for the financial year 2013-14 on April 29, “the management of JSPL is not in a position to comment on any queries related to the company’s performance".
According to sources, JSPL’s staggered acquisition, in the first phase, will take its holding to 44.68 per cent through equity subscriptions.
Conversion of another 328.5 million options within the next five years would increase JSPL’s stake in the Australian Stock Exchange listed company to 53.62 per cent without any additional consideration.
Currently, WCL has planned to raise $42.84 million through prorate rights issue in the ratio of two for 11 shares at $0.075 a share.
In the past four months, WLC mopped up $84.7 million through two other rights issues mainly from the JSPL group.
WLC expected JSPL to pump in around $29 million.
However, since April 7, WCL could not finalise the rights offer and lodge the prospectus.
Its stock is under voluntary suspension because of the delay in decision-making.
In a communication to ASX, WCL said that it might sort out the problem by May 2 and requested extension of suspension till then.
ICICI Bank stake Meanwhile, ICICI Bank has acquired 11.33 per cent stake in WCL.
The bank acquired 35.61 crore shares in the company by invocation of the two share mortgage deeds.
According to a disclosure to the Australian Stock Exchange, ICICI Bank acquired the shares of the two promoter entities including Gujarat NRE Coke by “invocation” of mortgage clauses.
The Indian bank and its wholly own British subsidiary, ICICI Bank UK Plc, were holding the shares in pledge.
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