From its investigations, the panel came up with a long list of issues with the technical expert’s report that valued Bowen’s shares.

The report, released on July 26, valued Bowen’s shares at A3.53-5.51c each, well below the 14c per share Bhushan bid in the preceding fortnight.

The panel said the technical expert should have considered a broader range of valuation methods and comparable transactions.

On the comparable transaction method used in the valuation, the panel said there needed to be a clear explanation why it was used over the appraised value method, or “indeed any other method”

The panel said the expert should not have used only one transaction, from 2007, as a reference point to the value of Bowen’s tenements under the comparable transaction method and “not simply modified the value per sub-block figure for each tenement without any adequate explanation”

The points raised by Bowen shareholder Macrae Holdings, in its two applications to the panel, were also published.

Macrae said another expert’s report valued EPC 930 at $10-20 million, with Bowen’s 40% stake equating to $4-8 million and its preferred value $4.8 million, while the technical expert valued this same stake at $900,000.

Indian steelmaker Bhushan already held a 22.23% stake in Bowen before the bid and had inked funding agreements for Bowen to conduct exploration.

Macrae also submitted that the technical expert did not include the value of any joint venture obligations by Bhushan, which includes funding commitments.

“Macrae submitted in response to Bowen’s submission that the value of the joint venture agreements should be estimated, otherwise Bowen has sold 85 per cent of EPC 1045 and 1206 and 90 per cent of EPC 1001 and 1002 for no consideration,” the panel said.

“We agree with the logic behind Macrae’s submission.”

The panel is still investigating a possible association between Bhushan and India’s Savni Holding, which holds a 16.66% stake of Bowen, and noted the “limitations of examination by correspondence”

The panel has already made rulings that could force the Indian company to sell back its obtained shares.

The panel has ordered Bowen to foot the bill to procure a new independent expert report, which must be submitted to the Australian Securities & Investments Commission for review.

If the takeover offer is not deemed to be fair or reasonable, the panel has ordered Bhushan to release the new independent report to the market and offer shareholders who took part in the 14c bid the right to buy back the shares at that price.

Bowen wholly owns coal permits EPC 1084 and EPC 1085 and has a 40% stake in EPC 930.

The explorer has a full stake in permit applications EPCA 1197, EPCA 1083 and EPCA 1259 and minor stakes of 10-15% in four other coal permits in Queensland.

Shares in Bowen are not currently trading, with the last close at 11c.