MARKETS

Jindal nears Wollongong takeover threshold

JINDAL Steel has increased its stake of Illawarra miner Wollongong Coal by 74.42% to 84.99% - mak...

Blair Price
Jindal nears Wollongong takeover threshold

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.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production