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JSPL to buy Australian firm Apollo’s iron ore assets

Jindal Steel and Power (JSPL) will acquire majority stake in iron ore assets of Australian firm Apollo Minerals by investing AUD 10 million (about Rs 56 crore).

According to the deal, Apollo Minerals will split its iron ore assets into a new listed company, NewCo, on the Australian Securities Exchange (ASX).

JSPL will acquire majority stake in NewCo by investing 10 million Australian dollars (AUD) at the time of its listing through an IPO.

In a statement, Apollo Minerals said that its existing shareholders would get about 49 per cent stake, as part of the demerger, in NewCo on a pro-rata basis after JSPL investment.

JSPL, with 11.7 per cent stake, is already a significant shareholder in Apollo Minerals — a diverse iron ore, base and precious metals exploration company.

As part of the demerger, all iron ore assets will be transferred to NewCo, while Apollo will retain its base and precious metals portfolio, the statement said.

'The demerger will consist of an in-specie distribution of NewCo shares to Apollo shareholders, an initial public offer (IPO) by NewCo, through which JSPL will invest AUD 10 million and listing of NewCo shares on the ASX,' it added.

Both the firms have signed a non-binding termsheet for the deal and ‘formal documentation and binding agreements are expected to be signed over the next two months’.
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