Jindal Steel and Power will acquire a majority stake of 53.63% in Gujarat NRE Coke’s loss-making Australian subsidiary through a complex deal, which involves issue of convertible notes, placement of shares and option to acquire shares at a later stage. The deal, announced last month, was cleared by the shareholders of Gujarat NRE Coking Coal Ltd., the Australian subsidiary of Kolkata-based Gujarat NRE Coke, in a general body meeting held in New South Wales. Prior to the transaction, JSPL was the second largest shareholder in Gujarat NRE Coking Coal, after its promoters, with a 31.49% stake. The Naveen Jindal-led company had launched a failed bid during February to acquire a controlling stake in Gujarat NRE Coking Coal through an open offer. The deal includes issue of AUD 45 million convertible notes to Jindal Steel’s subsidiary Jindal Steel and Power Ltd., placement of up to 328.5 million shares at AUD 0.20 per share to Jindal, together with a five-year option to acquire equal number of shares. If JSPL cannot subscribe 328.5 million shares in Gujarat NRE Coking Coal and convert options into equity shares, it can acquire 225 miIIion shares upon conversion of ADD 45 miIIion convertible notes, together with the option of acquiring similar number of shares. JSPL has already given an advance loan of more than AUD 16.61 million to Gujarat NRE Coking Coal, which had reported a loss of AUD 76.60 million, to meet the working capital deficit and repay some of the debt. The Jindal group firm has also appointed a director in Gujarat NRE’s Board.