JSPL picks up 31.49% stake in Gujarat NRE Coking Coal

Naveen Jindal-led Jindal Steel and Power (JSPL) bought only 31.49 per cent stake in Gujarat NRE Coke's Australian subsidiary at the end of its open offer.

JSPL earlier aimed to acquire a majority stake in Gujarat NRE Coking Coal, the Australian subsidiary of Kolkata-based Gujarat NRE Coke, through outright purchase of shares.

The promoters of Gujarat NRE Coking Coal hold 64.1 per cent stake in the company. Together with JSPL's stake of 31.49 per cent in the company, Gujarat NRE Coking Coal's publicly traded shares have got reduced to less than 5 per cent on the ASX.

JSPL, prior to launching the bid, was a minority shareholder of Gujarat NRE Coking Coal with a 19.48 per cent stake. The steel maker also has a long-term coking coal supply agreement with the company.

Gujarat NRE Coking Coal has two producing coking coal mines in Australia, which are estimated to have reserves of 125 million tonne (mn t) and resources of 651 mn t. The company has plans to increase its production to 5 million tonne per annum in the near future.