Jindal
Steel & Power plans of acquiring Rockland Richfields Limited could face
problems on account of takeover bid made by Linyi Mining of China. Linyi Mining
is a subsidiary of Shandong Energy, fifth largest coal producer of China.
Linyi Mining has offered A$0.52 per share to buy all shares of
Rockland Richfield. This offer is at 9.5% premium of CMP of A$0.475/share.
Linyi has already entered into a pre-bid agreement to buy 20% stake from Rockland's
chairman and other major shareholder Wu Pun Yan & Associates. Linyi's offer
opened on June 12, 2012 and will close on August 13, 2012.
As on June 2012, Wu Pan Yan & Associates 50.61%, Linyi
Mining 20% and JSPL holds 26.69% stake respectively in Rockland Richfield. JSPL
had made unsuccessful attempts to acquire the company in the past.
Rockland Richfield holds three highly prospective coalfields in
Bowen Basin in Queensland, Australia having combined resources of more than
900mn tonnes. JSPL has an equal JV agreement with the Rockland to develop two
coal tenements.
Source: MF Global
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