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Jindal Steel and Power Ltd (JSPL) has made an open offer to acquire Australian coal firm Rocklands Richfield Ltd at A$0.25 a share.
The on-market cash offer is being made by JSPL's Australian subsidiary Jindal Steel and Power (Australia) Pty Ltd (JSPA) for all shares of Rocklands listed on the Australian Stock Exchange. The total value of the offer is estimated at A$88 million or around Rs 413 crore.
JSPA currently owns 14.46 per cent in Rocklands. The company has received approval from the Foreign Investment Review Board, Australia to increase its stake above the 15 per cent threshold. Accordingly, JSPA intends to acquire shares on-market and intends to commence the offer from Wednesday (April 20), JSPL said in a statement to the Bombay Stock Exchange.
The offer price of A$0.25 is at a premium of 47 per cent over Monday's closing price of A$0.17. Rocklands' shares gained 12 per cent, on the ASX, on Wednesday to close at A$0.190. Following the offer, JSPL shares on the BSE hit a high of Rs 685 in the intra-day trade before closing at Rs 677.65, a gain of 2.39 per cent over the previous close.
JSPA has appointed Wilson HTM Investment Group to purchase shares in Rocklands on its behalf.
Rocklands Richfield has a 4.8 lakh tonne per annum coking coal plant in the Huaibei region of Anhui Province in eastern China. It also holds tenements of three highly prospective coal fields in the Bowen Basin region of Queensland, Australia. Rocklands coal reserves are estimated at 700 million tonnes. It has an additional 200-300 million tonnes of exploration target identified.
“Jindal considers that Rocklands represents an important addition to Jindal's coal exploration activities in Australia. It is well placed to ultimately bring the assets to development and production, creating future jobs and opportunities for the people of Queensland and a potentially important feedstock for Jindal's international steel manufacturing activities,” the company said in its offer document.
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