Coal producer Yancoal Australia Ltd’s, parent and major shareholder Yankuang Energy Group was planning to acquire the remaining shares of the company that the Chinese group does not already own, it said late on Wednesday.
The bid, which according to media reports was worth $1.8 billion at $3.60 a share, would give Yankuang control of the remaining 37.7% stake in Yancoal, resulting in its delisting from Hong Kong and Australian bourses.
The acquisition will be funded through issuance of convertible bonds for Yancoal’s Hong Kong-listed shares, Yankuang said in a statement.
Yancoal owns coal mines in New South Wales, Queensland and Western Australia, counts China Cinda Asset Management and count London-listed mining giant Glencore Plc among its top shareholders.
The potential deal follows recent election of Australia’s new Prime Minister Anthony Albanese, who has pledged greater focus to climate change and the relationship with China.
Trading in Yancoal’s shares on both Hong Kong and Australian stock exchanges was suspended on Thursday morning, citing potential material transactions.
Hong Kong shares of coal miner Yankuang jumped 5.8% to their highest since June 2011, while its Shanghai shares rose 3.2%.
Yankuang had said the potential transaction, which was approved at its board meeting on March 30, awaited approval from its shareholders as well as other relevant regulatory bodies.
Yancoal’s market capitalisation stood at A$8.04 billion ($5.68 billion) as of Wednesday’s close.
Source: Reuters.com