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At 50c per share, Essar’s proposal trumps a 42c per share offer from India’s Jindal Steel and Power made two weeks ago.
Perth-headquartered Rocklands said Essar had proposed either a scheme of arrangement or a friendly takeover.
A Rocklands board and shareholder meeting will be held to determine which offer is superior after considering the terms and conditions of the two proposals.
“Importantly, shareholders should note that, at this stage, neither the Jindal proposal nor the Essar proposal are formal offers capable of being submitted to shareholders for their consideration,” Rocklands announced this morning.
“Both offers are preliminary proposals only that are subject to (among other conditions) due diligence and formal terms and conditions being agreed and documented in an implementation agreement.”
The company will make further updates to keep shareholders informed.
Rocklands has three coal projects in Queensland’s Bowen Basin and has funded exploration through the earnings of China Coke and Chemicals, which it acquired via a reverse takeover in 2007. China Coke has a 480,000 tonnes per annum coking plant in eastern China.
Rocklands’ Hillalong project 100km west of Mackay has total JORC-compliant coal resources of 61.3 million tonnes while its namesake project 40km south of Blackwater has total resources of 880Mt.
Shares in Rocklands are up 17% this morning to 41c.
