Yankuang Energy says open to buying rest of Yancoal Australia
China's Yankuang Energy said on Tuesday that it was open to negotiations to buy the remaining shares in its majority-owned unit Yancoal Australia, after the Australian coal firm rejected a $1.8-billion offer.
Yankuang, which owns 62.26% of Yancoal's shares, said last month that it was considering offering Yancoal shareholders $3.60 per share in convertible bonds for the remaining 498.2 million shares not held by the company, which is a discount to the market price.
Yancoal said an independent committee it appointed to evaluate the potential transaction unanimously concluded that an acquisition by Yankuang would not be in the best interests of Yancoal's minority shareholders.
Shares of Yancoal rose 3% to A$5.58 ($3.99) in early trading.
Yankuang said in its statement that it remained open to further negotiation, adding it "looks forward to continuing its discussions" with Yancoal's independent board committee.
The Chinese energy firm said Yancoal's share price has inflated since the recent surge in coal prices, and its $3.60 offer was based on the stock's historic trading price and its own evaluation of how much the firm was worth.
Yankuang said its offer would also allow minority shareholders to convert their bonds into Yankuang shares if they wanted.
Reuters previously reported the offer was "unacceptable" to Glencore, which holds a 6.4% stake in Yancoal, because it "significantly undervalues" the stock.
Demand for thermal coal, the most polluting fossil fuel burned to generate electricity, is high due to power shortages in China and a European gas squeeze further exacerbated by Russia's invasion of Ukraine.
Yancoal confirmed it had not received an acceptable formal offer from Yankuang.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation