Jindal
Steel agreed to buy 9% stake in Gujarat NRE Coking Coal at A$25mn (US$24mn). In
addition, it will buy additional 5million tonnes of coking coal over 10 years
from the company’s Australian mines. The deal is executed at premium of 55.4%
against the market value of the company (Market Cap- A$178.76mn)
Gujarat
NRE Coking Coal Ltd. is a listed subsidiary (in Australian stock exchange) of
Indian Company Gujarat NRE Coke Ltd (68.79% stake). It is operating two coking
coal mine in Australia having an approximate reserve of 125mn tonnes and
resources of 651mn tonnes. Current unwashed coal production of the company
stood at 1.2mn tonnes p.a. FY12 revenue and EBITDA of the company stood at
$191.2mn and $49.7mn respectively.
Leave a Reply