Gujarat NRE launches hostile bid for Australia's Rey Resources

India's largest met coke producer Gujarat NRE Coke on Thursday said it has made a Rs53.21 crore offer to take over the Australian mining company Rey Resources, in what both companies agree is a hostile bid.

The Arun Jagatramka-led firm is looking to acquire about 90 per cent stake in the coal exploration firm in an off-market "all share no cash" deal through its Australian arm Gujarat NRE Minerals.

Gujarat NRE Minerals will issue one share for every five held in Rey, representing a premium of over 40 per cent on Rey's last trading price, the parent company said in a statement to the Bombay Stock Exchange.

"You can say it is a hostile bid. It is our internal decision and not in discussion or consent with the directors of Rey Resources," Gujarat NRE managing director Arun Kumar Jagatramka told television channel CNBC-TV18.

Rey Resources too said in a statement to the Australian stock exchange that Gujarat NRE's offer was unsolicited. "The directors of the company recommend that shareholders take no action concerning their shares in the company," the statement said.

Gujarat NRE Minerals, which has a "relevant interest" in about 16.7 percent of Rey currently, has two mines in Southern Coalfields of New South Wales. It has appointed Ernst & Young Transaction Advisory as lead corporate adviser for the offer.