PERTH (miningweekly.com) – An independent board committee appointed by ASX-listed Yancoal Australia to evaluate a potential takeover bid from shareholder Yankuang Energy Group Company has concluded that the offer would not be in the best interest of minority shareholders.
Yankuang Energy, which holds a 37.7% stake in Yancoal, had flagged a $1.8-billion offer, offering Yancoal shareholders convertible bonds worth $3.60 each for the remaining 498.2-million shares not yet held by the company.
The transaction implied a premium of 2.38% over Yancoal’s average closing price for the 60 days immediately prior to Yankuang Energy flagging its potential offer, and a premium of 21.86% over the average closing price for the 90 days immediately prior.
Yancoal on Tuesday said that the company had informed Yankuang Energy that it could not support the potential transaction in its current form, adding that to date, the company had not received any formal offer or proposal from Yankuang Energy, and that there was no certainty that an offer would materialise.