Steel giant buys big stake in Gujarat

The Indian steel giant that launched a takeover bid for Gujarat NRE Coking Coal this year is set to dramatically boost its share in the Illawarra coalminer.

Jindal Steel and Power Group could soon own at least 44% of Gujarat NRE, with the possibility of raising its stakes much higher in the future.

According to an announcement made by Gujarat NRE to the stock exchange this week, Jindal had stepped in to buy US$66 million worth of new shares.

This arrangement will make up for the Illawarra company’s failed efforts to raise the money needed to fund coal production at its Russell Vale and Wongawilli mines through an issue of new shares to its stakeholders in May.