Chinese Meijin Energy outbids JSPL for Rocklands Richfield
Thursday, 05 Nov 2009
Bloomberg reported that Chinese producer of coking coal Meijin Energy Group has offered AUD 154 million for Australian explorer Rocklands Richfield Ltd, topping an offer from Jindal Steel & Power Ltd of India.
Meijin offered 52 Australian cents for each share. . Meijin’s proposal is conditional on it acquiring 19.9% to 90% of Rocklands.
Sydney based company said that the Meijin offer is superior to the Jindal proposal.
Rocklands said that the Meijin and Jindal offers are both preliminary and can not be submitted to shareholders for consideration,
JSPL owns about 14.2% of the company, which controls three metallurgical coal projects in Queensland State, and made a takeover bid of 42 cents a share in September.
Rocklands has gained six fold in Sydney trading in the last six months, giving the company a market value of about AUD 119 million.
