The Chinese-majority owner of Australian-coal miner Yancoal is considering a $1.8 billion bid to acquire the remaining shares it does not currently own. Yankuang said in documents filed with the Hong Kong Exchange on May 25 that it was mulling a $US3.60 a share bid for Yancoal, financed through new convertible bonds, as reported by Reuters.
Yancoal requested a trading halt pending an update.
Yankuang currently owns a 62.3%. Other shareholders include China Cinda Asset Management (15.89%), Glencore (about 6.4%) and China Shandong Investments Ltd. (5.41%).
Yankuang’s $US3.60 a share valuation is well below the $6.08 the company last traded at on the ASX.
Yancoal owns and manages coal mines in New South Wales, Queensland, and Western Australia, including Moolarben in Mudgee and Mount Thorley Warkworth in Hunter Valley.