Yancoal seeking clarity from suitor
PERTH (miningweekly.com) – Australian coal miner Yancoal Australia on Monday urged shareholders not to take any action regarding a potential takeover bid from shareholder Yankuang Energy Group Company, which owns a 37.7% stake in Yancoal.
Yankuang Energy last week stated that it was considering offering Yancoal shareholders convertible bonds worth $3.60 each for the remaining 498.2-million shares not yet held by the company, valuing the transaction at around $1.8-billion.
The transaction would offer 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 Monday told shareholders that it had received an unsigned, non-binding expression of interest in relation to the transaction on April 29, but warned shareholders that there was no certainty that the transaction would proceed.
The company has now appointed an independent board committee (IBC) to evaluate and respond to the potential transaction and, to make recommendations to independent shareholders, if required. The IBC has reached out to Yankuang Energy for clarification and additional information in relation to the potential transaction, including a better understanding of how the suitor has assessed the value of Yancoal.
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