Rocklands breaks off takeover negoitations

Brisbane (Energy Publishing) - Queensland coal explorer Rocklands Richfield has terminated negotiations with Indian company Jindal Steel & Power in relation to Jindal’s conditional, indicative proposal to acquire 100% of the company’s shares.

On 22 September 2009, Rocklands entered into exclusive negotiations with Jindal for the proposed takeover. Rocklands later received unsolicited competing conditional, indicative proposals from the Essar Group of India and the Meijin Energy Group of China and invited Jindal to match these proposals.

Rocklands agreed to extend the period for Jindal to complete due diligence from 31 October 2009 to 15 December 2009 and to negotiate a formal implementation agreement with Rocklands on an exclusive basis until 31 December 2009. Rocklands’ chairman Benny Wu said the company was unable to submit a formal takeover proposal to shareholders the directors considered to be in the shareholders’ best interest.