Bhushan Steel, India's third-largest steelmaker, has taken up a 15 pct stake in Australia's Bowen Energy for an estimated 3.2 mln aud, the Economic Times reported.
'We have taken the stake through a preferential allotment,' the report quoted Bhushan Steel chief financial officer Nitin Johari as saying.
It also quoted unnamed sources close to the company as saying Bhushan has the option to hike this stake.
Earlier this week the companies had signed a memorandum of understanding aimed at creating a strategic partnership.
The deal is expected to give Bhushan Steel access to coal mines in the Australian state of Queensland, to gain a long-term supply of quality Australian coal for its expanding steelmaking operations across Asia, according to the report. (Forbes)