RE: RE: Friendly Jindal Talks End Also Reported by Reuters US Edition
Thursday, 7 Feb 2013 03:06am EST
The Economic Times reported that Jindal Steel And Power Ltd has dropped the plan to acquire Cameroon focused iron ore firm Afferro Mining Inc due to low grade magnetite reserves of the African company and high costs involved in beneficiation of the ore. The Company said in a statement that it has withdrawn discussions of acquisition for Afferro Mining and the mutually exclusivity period has ended without any conclusive outcome. The deal was estimated to be about $500-600 million. Citing the reasons for backing out, the Naveen Jindal-led Company said that low grade magnetite and related problems in beneficiation, new mining code in Cameroon, financial unviablility, lack of infrastructure were the deterrents in acquiring Afferro Mining. However, the Cameroon focused firm said in a statement on website that negotiations with JSPL have been terminated on the grounds that the Board of Directors of Afferro firmly believes that Jindal's offer fundamentally undervalues the company's high quality, strategically located portfolio of iron ore projects.
Confusing this reported amount in Economic Times/India Times when the stock trades at 77p. Anyway no Friendly Deal with Jindal,...we wait to see what IMIC and the Chinese have to offer.
Cheers, Mark (AFF should have clarified what amount the Jindal offer was for, in their NR)