Photo by: Bloomberg
PERTH (miningweekly.com) – The share price of ASX-listed coal miner Yancoal Australia fell by more than 16% on Tuesday after the junior’s parent company Yanzhou Coal Mining abandoned a privatisation bid.
In 2013, Yanzhou announced that it was considering the privatisation of Yancoal Australia, which owns mines in New South Wales and Queensland, by buying out minorities.
Under the Chinese group’s proposal, Yanzhou had been set to acquire the remaining 22% of Yancoal’s issued shares from its minority shareholders in exchange for 0.91 Yanzhou CHESS depositary interests for every share held.
The proposed transaction had prompted the federal government to remove certain foreign investment sell-down conditions imposed on Yanzhou, which restricted its ownership in Yancoal.
Yancoal on Tuesday said that it had now been notified that Yanzhou would no longer pursue its privatisation bid, with the junior failing to give a reason.
Yancoal shares were trading at a low of 44c a share on Tuesday, down from an opening price of 54c a share.