New suitor emerges for Rocklands
Announcement likely by Nov 5; Jindal Steel buys another 1.41% stake
Shubhashish. Mumbai
Jindal Steel and Power Ltd (JSPL) must have rejoiced after Essar Steel withdrew its bid for the Australian coking coal miner Rocklands Richfield on October 20. However, its joy is likely to be short lived as a third company has shown interest in Rocklands.
Rocklands has requested the Australian Stock Exchange to halt trading in securities related to Rocklands. It said, "The trading halt is required as an announcement is expected to be made by Rocklands prior to the commencement of trading on November 5, in relation to the receipt of a further offer to take over the company."
The company is expected to make public the new offer before November 5.
Jindal, on its part, is not letting any stone unturned to tighten its grip on the miner. The company, in an announcement to the Australian Stock Exchange on October 28, said it has increased its stake in Rocklands by another 1.41%. Jindal now holds a 14.16% stake in the company.
Moreover, Jindal has requested Rocklands to grant it another month to complete the due diligence. It was supposed to complete the due diligence by October 31 and intended to negotiate other finer details of the deal by November 15. Jindal now wants the due diligence period to be extended till November 30 and other details of the deal to be decided by December 15.
"Naveen Jindal (Jindal Steel's executive vice-chairman and managing director) is planning to shortly visit Australia and China, which reflects the company's keenness and commitment to the transaction," Jindal Steel statement said.
Rocklands said it is considering Jindal's request for more time and said it is likely to agree to an extension of the due diligence period.
On October 20, Essar had dropped out of it's A$144 million ($134 million) bid for Rocklands without giving any reasons. Jindal has offered to buy 100% stake in the Australian company for A$121 million.
Rocklands, which controls three metallurgical coal projects in Queensland-state, has surged six fold in Sydney trading in the last six months, giving the company a market value of about A$107 million.



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