Jindal matches $200m offer for Rocklands News: 10-November-09 by Rebecca Lawson
Indian company Jindal Steel and Power has indicated it is keen to acquire South Perth-based coal producer Rocklands Richfield by matching a $200 million offer by a Chinese entity.
Last week, Chinese company Meijin Energy Group proposed an all-cash takeover for Rocklands, offering 52 cents for each share which trumped Jindal's previous offer of 42 cents per share,
Rocklands said today that earlier this month it had received a revised takeover proposal from Jindal, which offered 50 cents cash for each shares on a fully diluted basis, valuing Rocklands at $195 million.
Jindal then sweetened its cash offer and all other conditions to match Meijin.
Rocklands said it will hold talks with each of the companies and will keep shareholders informed.
Shares in Rocklands climbed up one cent to 42c at 13:07 AEDT.
and from Financial Express (India)
Jindal matches $200-m offer for Rocklands
Mumbai: Jindal Steel and Power Ltd (JSPL), which had last week faced a rival bid from Chinese entity, Meijin Energy Group, in a quest to acquire South Perth-based coal producer Rocklands Richfield on Tuesday indicated that it is keen on acquiring coal explorer Rocklands by matching a $200 million offer made by the Chinese entity.
Meijin Energy Group had given a tough competition to JSPL when it proposed an all-cash takeover for Rocklands last week, offering 52 cents a share, which trumped Jindal’s previous offer of 42 cents per share.
Rocklands in its statement to the Australian Stock Exchange on Tuesday said, that earlier this month it had received a revised takeover proposal from Jindal, which offered 50 cents cash for each shares on a fully diluted basis, valuing Rocklands at $195 million. Jindal then sweetened its cash offer and all other conditions to match the Meijin offer.
Rocklands Richfield owns a series of high-grade coking coal deposits in the Bowen Basin of Queensland and the coal deposits are estimated to total about 880 million tonnes.
JSPL was earlier facing competition from Essar Steel, which proposed to acquire all of Rockland’s shares at 50 cents per share, valuing the target at about $144 million. However, Essar withdrew its bid for Rocklands on October 20, 2009.
Rocklands had entered into a term sheet with JSPL in September 22, through which JSPL proposed to acquire all of Rockland’s shares at 42 cents a piece. Jindal currently holds a 14.16% stake in Rocklands.
JSPL’s shares on Tuesday were marginally up, by 0.10% to Rs 674.80, on the Bombay Stock Exchange.
Coal, which is the key raw material for the steel and power industry has been a much-sought after commodity with most Indian companies scouting globally for coal mines.
Indian steel makers’ are expanding their search for global raw material assets. Australia is the world’s largest coal exporter and has vast resources of quality coking coal, used in steel making. Several Indian steel makers have either acquired coal assets abroad or are pursuing access to this raw material in foreign markets as there is a shortfall of domestic supply to feed rapid growth in India’s steel sector.
RCI Price at posting:
43.0¢ Sentiment: Hold Disclosure: Held
