JSPL majority stake in Gujarat NRE's Australian mines

Jindal Steel and Power (JSPL) will acquire a majority 53.63 percent stake in the Gujarat NRE Coking Coal Ltd's Australian mining subsidiary.

GNCCL shareholders Wednesday approved the deal in a general body meeting in New South Wales.

The deal, involving issue of convertible notes, placement of shares and the option to acquire shares at a later stage, would ultimately result in the holding of Jindal Group going up to 53.62 percent.

The deal also involves two long-term off-take agreements by JSPL for securing coking coal from GNCCL's two mines estimated to have reserves of 125 million tonnes, GNCCL said in a filing to the Australian Securities Exchange.

The Naveen Jindal-led group, which prior to the transaction was the second largest shareholder in GNCCL with 31.49 percent stake, had earlier this year launched a failed bid to acquire controlling stake through an open offer.