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Gujarat NRE to send bidders document to Rey

KOLKATA: Met coke manufacturer Gujarat NRE Coke (GNCL) will send its bidders document to REY Resources shareholders within a fortnight, company officials said. This follows the announcement made by Gujarat NRE that it is keen to takeover all the shares of Sydney-based REY Resources.

The takeover is proposed to be made through GNCL’s Australian subsidiary Gujarat NRE Minerals (GNM), which has a holding of around 17 per cent in Rey. “This is the single largest holding,” a GNCL official said. While GNCL made an announcement on the Indian stock exchanges stating its intention to takeover the Australian company, Rey Resources made a posting on the Australian Stock Exchanges saying “Gujarat’s announcement concerning its intention to make an offer was unsolicited”.

The directors of REY also gave a ‘no action’ recommendation to the shareholders. GNCL saw this as a normal development saying that the company has given this advice pending the release of the bidder’s statement and further advice from the company. They said the sending of the bidders statement to the shareholders will be followed by a management recommendation.

Rey owns coal, oil and gas tenements covering a large area in Canning Basin in Western Australia, the GNCL announcement said, adding that there were excellent potential for large scale development of the properties.

In a related development, GNCL Vice-Chairman and Managing Director Arun Jagatramka stepped down from the REY board where he represented GNM. Company sources said that this was done in the propriety of things at this juncture. Mr. Jagatramka said that GNM’s board was “confident that putting GNM assets together with the Rey assets and potentially realising the upside offered by the combined group with its exposure to Indian coal markets, will be a dramatic value-driver for the shareholders of REY and GNM”.

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