GOOD READS

JSPL eyes Guj NRE unit

Calcutta, Jan. 31: Navin Jindal flagship Jindal Steel and Power (JSPL) today came up with an all-cash offer of Aus $221.61 million (about Rs 1,200 crore) to buy out Gujarat NRE Coking Coal, the Australian subsidiary of Calcutta-based Gujarat NRE Coke.

The deal, if it goes through, will help JSPL to take full control of two coking coal mines that Gujarat NRE has in Australia and meet raw material needs.

Gujarat NRE already supplies coking coal to JSPL from the New South Wales mines. Gujarat NRE Coke, which is majority owned by Arun Kumar Jagatramka, plans to double output to five million tonnes a year.

The two coking coal mines are estimated to have resources of 651mt.

JSPL has been in search of coking coal mines abroad as the geological reserve of this crucial raw material in steel making through the blast furnace route is limited in India. The company has ambitious plans to expand capacity four-fold in the next two years.

The company also produces power and is on the look out for thermal coal as well. It operates coal mines in South Africa and Mozambique. Navin Jindal bought Canada's CIC Energy Corp, which is developing a coal mine in Botswana, last year after a failed attempt by his brother Sajjan Jindal's JSW Steel.

At present, Gujarat NRE Coking Coal sells most of its output to its parent Gujarat NRE Coke Ltd at market price on arm's length terms.

Calcutta-based Gujarat NRE Coke, listed on the BSE and NSE, is the largest Indian manufacturer of metallurgical coke.

The Jindal offer of Aus $0.20 per share represents a premium of 5 per cent over the January 29 closing price of Gujarat NRE Coking Coal on the Australian Securities Exchange (ASX).

In a filing to the Aussie bourse, JSPL, which is already a minority shareholder in Gujarat NRE Coking Coal with a 19.48 per cent stake, said it was making the unconditional offer to all shareholders of the company

"The Aus $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 Aus $0.19 on January 29," JSPL vice-chairman Vikrant Gujral said in a letter to Gujarat NRE Coking Coal shareholders.

Gujarat NRE Coking Coal's shares rose 7.89 per cent on the ASX to close at Aus $0.205 today.

Quiz: How well do you know India's economy?

Question 1

Which of these products is India the world's largest producer of?

Poll Choice Options
  • Wheat
  • Rice
  • Milk
1
2
3
4
5
6
7
8
9
10

Latest News

  • GM says facing multiple probes into recent recalls

    General Motors (GM.N) revealed on Thursday it is the subject of five different government probes related to its massive recalls, including two previously unreported investigations by the U.S. Securities and Exchange Commission and a state prosecutor. GM disclosed the probes in a regulatory filing after reporting earlier in the day that first-quarter profit tumbled 88 percent due to the recall. The five government investigations are from the U.S. Attorney's Office for the Southern District of …

  • Asian shares, dollar struggle on Ukraine anxiety
    Asian shares, dollar struggle on Ukraine anxiety

    Asian stocks struggled on Friday, as fears of an escalating Ukraine crisis eclipsed upbeat U.S. economic data and robust U.S. tech shares. U.S. Secretary of State John Kerry said on Thursday that time was running out for Moscow to change its course in Ukraine. MSCI's broadest index of Asia-Pacific shares outside Japan erased early modest gains and fell 0.3 percent. Japan's Nikkei stock average took an opposite track and added 0.5 percent in choppy trade, after opening solidly lower amid …

  • Obama wraps up Japan visit after security pledge but no trade deal
    Obama wraps up Japan visit after security pledge but no trade deal

    U.S. President Barack Obama neared the end of a state visit to Japan on Friday during which he assured America's close ally that Washington would come to its defence but failed to clinch a trade deal vital to his promised "pivot" to Asia. Failure to reach a trade deal has delayed a joint statement on security and economic ties that Obama and Prime Minister Shinzo Abe were expected to issue after their summit on Thursday. Obama and Abe had ordered their top aides to make a final push to reach …

  • 100-Square-Foot Cabin is a Kaleidoscopic Wonderland

    Photo via NYMag Plucked from New York magazine's annual Spring Design issue, which published this week, this technicolor dream of a microhome right outside Santa Fe, N.M. serves as a wee "reverse country house," for couple Linda and Jack Oldham—who... …

  • NTT DoCoMo to exit India, unload entire stake in Tata Teleservices - s …

    Japan's NTT DoCoMo Inc (9437.T) will unload its 26.5 percent stake in loss-making Indian mobile phone joint venture Tata Teleservices Ltd and exit the country as it struggles with tough price competition, sources familiar with the matter said on Friday. NTT DoCoMo will make a formal decision at a board meeting on Friday, the sources said. An NTT DoCoMo spokesman said the company was considering various options for its overseas operations but that nothing had been decided. Japan's top …

IN-DEPTH ANALYSIS & INTERVIEWS

  • Too good to be true?

    Developers are offering lucrative buyback schemes. But such promises may not be always kept. …

  • Leaderspeak with Vikram Limaye

    Vikram Limaye MD & CEO, IDFC Ltd shares many firsts from his life. …

  • The Greening of the House of Tatas

    How a dedicated team converted a 90-year-old heritage structure into a benchmark for environment-friendly buildings. …

  • Appy Voting

    Mobile and online apps, seeking to inform or influence voters, have been more active than ever before in this election. …

  • In the crosshairs

    Why the future of FDI in multi-brand retail looks bleak after the polls. …

  • A Samurai from Chandigarh

    Advertising veteran Sandeep Goyal is disarmingly frank as he recounts his years with Dentsu. …

  • Falling in line

    Global investors gear up to working with Narendra Modi despite reservations about his secular credentials. …

MARKET MOVERS

    •  
      Recent Quotes
      Symbol Price Change % ChgChart 
      Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
      You need to enable your browser cookies to view your most recent quotes.
    • Recent Quotes News

      •  
        Sign-in to view quotes in your portfolios.