JSPL stuns by selling 2.77% of Rocklands

Jindal Steel and Power (Mauritius), a subsidiary of Jindal Steel and Power Ltd (JSPL), has sold 21.5 lakh shares (or a 2.77%) of Australia’s Rocklands Richfield in the open market. The development is surprising given that Jindal had on Tuesday raised its bid to acquire the company.

In an announcement to the Australian Stock Exchange, Rocklands said JSPL’s holding now stands at 13.60%. JSPL sold the shares in three tranches between December 15, 2009 and January 5, 2010.

Sushil Maroo, director (finance), JSPL, refused to comment on the reasons for the stake sale. “We have sold some shares but I don’t want to comment on the reasons for it,” he told DNA.

When asked if Jindal is withdrawing from the bid, Maroo said, “No comment.”
Rocklands has sought an explanation from JSPL on the sale. Company officals are scheduled to meet JSPL top officials, including Naveen Jindal, executive vice chairman & managing director, next week.

JSPL is locked-in a battle with China’s Meijin Energy to acquire Rocklands and matched its bid with the Chinese counterpart a few days ago.