Bhushan Steel launches takeover offer for Australian coal miner Bowen Energy
22 Sep 2010
Bhushan Steel, India's largest manufacturer of auto-grade steel, today made an on-market unconditional cash takeover bid for Bowen Energy Ltd, an Australian coal and minerals exploration company.
New Delhi-based Bhushan Steel, through its Australian subsidiary Bhushan Steel Australia Pty Ltd, has been investing in Bowen Energy since 2007 and had acquired a 59.46-per cent stake in the Australian listed company.
Bhushan Steel Australia is now offering 10 cents per Bowen share for the remaining shares, a premium of 79 per cent to the company's 20 September closing share price of $0.06 cents.
The takeover offer, which values the Brisbane-based company at $8.16 million, sent Bowen's share price soaring by 87.5 per cent to 10.5 cents, a little above Bhushan's offer of 10 cents per share.
Bhushan, which has hired UBS Securities Australia to buy the shares on-market, said that its unconditional cash offer would commence on 7 October 2010 and end on 7 November 2010.
In a letter to Bowen shareholders, Bhushan said, "The offer price represents a generous premium having regard not only for the company's share price and preferred value, but also to the fact that Bhushan already owns 59.46 per cent of the company."