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NMDC Ltd, the country’s largest iron ore miner, has obtained a firmer grip over its Australian mineral exploration subsidiary by acquiring around 30 per cent additional stake.
NMDC last month raised its stake in its Australian subsidiary Legacy Iron Ore Ltd to 78.56 per cent from 48.82 per cent at a cost of A$12.3 million (about ₹69 crore). It acquired additional shares through exercise of its entitlement (in a right issue) of fresh shares.
The Australian Stock Exchange listed-Legacy’s disclosures revealed this. NMDC is yet to make this disclosure to the stock exchanges in India. Interestingly, the entitlement offer was not fully subscribed by other investors causing a shortfall. Sources said NMDC might take up a substantial part of the unclaimed entitlements by other investors. This may raise the company’s stake even further.
The Australian company said a decision on the issue would be taken within the next three months. The three-for-one entitlement offer was priced at 1.4 cents a shares.
In 2011, NMDC had first acquired 50 per cent equity of Legacy, at 8 cents a share aggregating to A$18.89 million (₹99.63 crore). Legacy needed to raise the equity funds of A$25 million for advancing its development activity at the Mt Bevan iron ore project as also repayment of an A$3-million Citibank loan and further exploration as well as development work across its other assets.
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