JSW Steel likely to bid for Australian coal miner New Hope
24 Oct 2011
JSW Steel Ltd, India's third-largest steel maker, is considering a bid for Australian coal miner New Hope Corporation, which is worth around A$5 billion ($5.2 billion) at current valuation, reports quoting sources close to the development said.
New Hope, like several other Australian mining companies, is in serious talks with several suitors as more and more companies bid to acquire cheaper mining assets in Australia.
New Hope, which operates the Auckland coal mine in Queensland, produces and exports around six million tonnes of thermal coal a year. It also owns an export terminal.
The company, which on 5 October said it planned to invite select groups to submit offers over the coming months, yesterday revealed that it is in serious talks with several suitors.
New Hope had a capitalisation of about $4.5 billion before the announcement. Its shares closed up 1.7 per cent in Sydney trading today, valuing the company at A$5 billion.
JSW Steel is reported to be evaluating New Hope's assets ahead of making a formal offer. JSW is likely to raises funds on its own for the acquisition or form a joint venture, reports quoted the sources as saying.