Gujarat NRE Coking Coal (ASX: GNM) has fielded a A$274 million on-market cash takeover bid from Jindal Steel & Power (Australia), a subsidiary of Indian giant Jindal Steel & Power – one of the largest steel producers in India.
The company told shareholders today to “take no action” on the $0.20 per share offer that undervalues the company by around 5% based on its current market cap. of $288 million and share price of $0.21.
New Delhi-based Jindal Steel & Power is a part of the US$12 billion diversified O. P. Jindal Group and has an annual turnover of over US$4 billion.
Gujarat has been advised that the Gujarat NRE group companies, major shareholders that hold about 64% of the issued capital in the company, do not plan to accept Jindal’s offer.
Gujarat owns and operates two prime quality hard coking coal mines in the Illawarra region of New South Wales. Both mines are under longwall production.
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