National Mineral Development Corporation Ltd (NMDC) yesterday submitted a formal bid for acquiring a 50-per cent stake in Australian exploration company Legacy Iron Ore.
The proposed acquisition, expected to cost around $40 million (Rs200 crore), will give the state-owned miner rights to Legacy's vast rock phosphate and iron ore deposits.
Hyderabad-based NMDC, India's largest iron ore miner, declined to comment on the deal size, citing confidentiality.
Perth-based Legacy yesterday said in a filing with the Australian Securities Exchange (ASX) that it has received a formal proposal from NMDC for a strategic alliance. Trading of its shares has been halted till today.
''The company wishes to provide an update on a formal offer received from National Mineral Development Corp. (NMDC) of India regarding a proposal to form a strategic alliance via a cornerstone investment,'' Legacy said in its filing.
In August Legacy Iron Ore had granted NMDC an extension of time to finalise the necessary internal approvals to enable the state-owned miner to make a formal offer for Legacy.