Jindal nears Wollongong takeover threshold

JINDAL Steel has increased its stake of Illawarra miner Wollongong Coal by 74.42% to 84.99% – making it a little more than 5% away from reaching the 90% level that triggers a compulsory acquisition of the remaining shares.
Jindal nears Wollongong takeover threshold Jindal nears Wollongong takeover threshold Jindal nears Wollongong takeover threshold Jindal nears Wollongong takeover threshold Jindal nears Wollongong takeover threshold

Image courtesy of Wollongong Coal.

Blair Price

A white knight investor, which saved the near-bankrupt coal company a year ago, Jindal’s recent stake jump came courtesy of a recent 19:20 renounceable accelerated rights issue that did not appeal to retail investors.

The deal, offering 19 new shares at 1.8c each for every 20 held, was opened up to retail investors from November 17 to 20.

Yet Wollongong shares were trading at 1.6c before this offer was made to retail investors and the shares have since fallen to 0.1c, or 6.3%, to 1.5c yesterday.

Jindal spent nearly $50 million in the recent capital raising with Wollongong previously saying it would use $45 million of the raised funds to repay a loan facility offered by Jindal.

Wollongong previously said any remaining funds raised could go into paying salaries, including redundancies, capital development, plus repaying other past liabilities.

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