Thursday 31 January 2013

Jindal Steel Bids A$222 Million for Rest of Gujarat NRE for Coal

By James Paton - Jan 31, 2013
Bloomberg
Jindal Steel & Power Ltd. (JSP), controlled by Indian billionaire lawmaker Naveen Jindal, offered A$222 million ($231 million) to buy the rest of Gujarat NRE Coking Coal Ltd. (GNM)

Jindal Steel offered 20 Australian cents in cash for every share of Gujarat, 5.3 percent more than the close yesterday, the New Delhi-based company said today in a statement. The Indian steelmaker already holds 19.5 percent of Gujarat NRE, which climbed to 21 cents at 3:01 p.m. in Sydney.

Buying Gujarat NRE, which already supplies Jindal Steel, would give Jindal 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.

Jindal Steel operates coal mines in South Africa and Mozambique and agreed last year to buy Canada’s CIC Energy Corp., which is developing a coal mine in Botswana. Gujarat NRE is controlled by Chairman Arun Kumar Jagatramka, who has a 63.75 percent stake, according to data compiled by Bloomberg.

Jindal Steel hired Wilson HTM Investment Group (WIG) for the Gujarat transaction, according to the statement.

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