New Delhi-based Bhushan Steel Ltd says it will make an on-market takeover bid for Australian coal and mineral exploration minnow Bowen Energy Ltd.
Its subsidiary Bhushan Steel (Australia) Pty Ltd plans to offer 10 cents per share for Bowen Energy, valuing the target at $8.16 million.
Bowen's share price jumped on the news, rising 4.4 cents or 78.57 per cent by 1009 AEST to 10 cents, on par with the offer price.
Bhushan said the unconditional cash offer would commence on October 7 and end a month later.
It said the bidder's statement would be served on Bowen Energy later on Wednesday.
Bhushan is Bowen Energy's largest shareholder, with a stake of about 59.64 per cent.