Yancoal Australia $2.69 billion acquisition of Coal & Allied

Overview:

• Yancoal Australia has acquired Coal & Allied from Rio Tinto Australia for $2.69 billion.
• Coal & Allied controls coal mines in Hunter Valley New South Wales, including the Warkworth and Mount Thorley mines and a stake in the Port Waratah coal loading facility.
• Yancoal beat a rival bid from Glencore.
• To fund the acquisition Yancoal Australia has raised $2.5 billion capital for the acquisition through an entitlement offer.
• The offer entitled shareholders to 23.6 shares for every 1 existing share held on the record date and also a placement of new shares to institutional investors, with an offer price of $0.10 per share.
• Rio Tinto Australia is a leading global mining group listed both in Australia and the UK.
• Yancoal is a coal producer 78% owned by Yanzhou Coal Mining.

Katrin Kostadinova - Data analyst