JSW Steel will acquire an additional economic interest in M Res NSW HCC Pty Ltd for $60 million via its subsidiary, JSW Steel Netherlands. This increases JSW Steel’s economic interest in M Res NSW to 83.33%. The transaction will also increase the company’s effective economic interest in Illawarra Metallurgical Coal to 30% and is expected to close in Q3FY26.
Increased Investment in M Res NSW
JSW Steel, through its wholly-owned subsidiary JSW Steel Netherlands, has entered into definitive agreements to acquire additional economic interest in M Res NSW HCC Pty Ltd (M Res NSW) for an aggregate consideration of $60 million. This acquisition builds on the company’s existing investments.
Transaction Details
The transaction involves two key steps:
* Purchase of non-voting Class B shares in M Res NSW from M Res NSW HCC Holdings Pty Ltd for $24 million.
* Subscription for additional non-voting Class B shares to be issued by M Res NSW for $36 million.
Impact on Shareholding
Upon completion, these transactions will increase JSW Steel’s economic interest in M Res NSW from 66.67% to 83.33%.
Use of Funds
The $36 million from the share subscription will be used by M Res NSW to acquire an additional 6% shareholding in Golden M NSW Pty Ltd (Golden M) from Golden Energy and Resources Pte. Ltd. (GEAR) for $36 million. This will increase M Res NSW’s stake in Golden M to 36%.
Benefit to Illawarra Metallurgical Coal
Golden M holds 100% ownership of Illawarra Coal Holdings Pty Ltd, and as a result of the JSW Steel transaction, the company’s effective economic interest in Illawarra Metallurgical Coal will increase to 30%, compared to the previous 20%. This will provide increased offtake rights to the Company.
Additional Investment Commitment
The company’s existing investment in M Res NSW requires it to additionally invest up to $50 million in M Res NSW in 2030 to fund the deferred consideration payable to South32. This will correspondingly increase to $75 million.
Timeline
The closing of the Transaction is subject to customary conditions precedent and is expected to close in Q3FY26.
Source: BSE
