Rocklands Richfield Ltd
(ASX:RCI) has terminated negotiations with Jindal Steel and Power after deciding that its takeover proposal was not in the best interests of shareholders.
Just last month Jindal revised its offer to match the 56 cents a share offer made by China’s Meijin Energy Group which valued Rocklands at around $197 million.
The company says it has invested substantial senior management time and other resources in its extensive discussions with Jindal but, based on the latest Jindal proposal, the board no longer considers that it is in the best interests of Rocklands shareholders for it to continue these discussions.
Rocklands says it is confident in its growth prospects given an improved global outlook for metallurgical coal and that its directors are now considering future strategic opportunities for the company under its current ownership structure.
Rocklands Richfield posted a loss for the year to June 30, 2009.
