Essar out of contest for stake in Rocklands

Essar out of contest for stake in Rocklands

Melbourne: Essar Group withdrew from a bidding contest with Jindal Steel and Power Ltd for Australian coal explorer Rocklands Richfield Ltd.

Rocklands has written to Essar asking why it’s dropping the 144 million Australian dollar (Rs574 crore) bid, and to determine whether it may wish to continue the takeover on amended terms, the Sydney-based firm said in a statement on Tuesday.

The Jindal offer of 42 Australian cents a share remains on track with the New Delhi-based firm continuing its due diligence, Rocklands said on Tuesday. Jindal’s offer is preliminary, non-binding and conditional, the Australian company said.

Jindal owns 12.75% of the coal explorer, a 9 October statement to the Australian stock exchange shows.