JSPL buys majority stake in Gujarat NRE Coke

Jindal Steel and Power Ltd (JSPL) has acquired a majority stake in Gujarat NRE Coking Coal,the Australian subsidiary of Kolkata-based Gujarat NRE Coke,which would enable it to secure resource supply and minimise risk in prices.

The deal will enable JSPL acquire a majority stake of 53.63 per cent in Gujarat NRE Coke’s Australian subsidiary through a deal that involves issue of convertible notes,placement of shares and option to acquire shares at a later stage.

The deal was cleared by shareholders of Gujarat NRE Coking Coal in a general body meeting in New South Wales.

“The deal with Gujarat NRE will give us an assurance in supply and price stability,which is why we are exploring opportunities outside India,as there is a shortage of resources in the domestic market,” said Ravi Uppal,MD and CEO,JSPL.