Chinese co bids higher than Jindal entity for Australian firm

MELBOURNE/NEW DELHI: Competing with Indian entity Jindal Steel and Power, Chinese coke producer Meijin Energy Group has quoted a higher bid for acquiring Australian coal company Rocklands Richfields Ltd.

The Australian firm has already entered into a preliminary agreement with Jindal Steel and Power, for the buyout proposal of USD 0.42 per share. However, Meijin Energy made a higher conditional takeover offer of USD 0.52 per share.

Rocklands Richfields in a regulatory filing on November 4 said the offer made by the Chinese firm (received on November 2) is superior to that by Jindal Steel and Power.

"Meijin proposes to acquire 100 per cent of the shares in Rocklands Richfields at an indicative offer price of USD 0.52 per share.

"After careful consideration of the terms of the Meijin proposal, the Board of Rocklands Richfields has determined that the Meijin proposal is superior to the Jindal proposal," the filing said.

The Australian company noted that proposals from neither Jindal firm or Meijin are "formal offers capable of being submitted to shareholders for their consideration".

"Both offers are preliminary proposals only that are subject to (among other conditions) due diligence and formal terms and conditions...," the filing added.