Indian steel producer Jindal Steel and Power (JSPL) has made an open offer to take over the Australian subsidiary of Gujarat NRE Coke for A$222m ($231m).
JSPL bid A$0.20 per share via its Australian subsidiary Jindal Steel and Power Australia to take complete control of Gujarat NRE Coking Coal.
The company currently owns a 19.5% minority stake in Gujarat NRE Coking Coal and is looking to secure coal production for its steel projects in India via the acquisition.
JSPL vice-chairman Vikrant Gujral said, "The AUD 0.20 cash offer allows Gujarat NRE Coking Coal’s shareholders to realise full and fair value of their shares in a volatile equity market.
"The offer represents an attractive premium of 5 per cent on the closing share price of AUD 0.19 on January 29."
JSPL’s unconditional offer will be open from 15 February 2013 to 15 March 2013.
The company plans to expand its steel production capacity in India to 20 million tonnes a year by 2020, which requires substantial coking coal supplies for operation.