Yancoal Australia (ASX: YAL) has received a proposal from its holding company and controlling shareholder, Yanzhou Coal Mining Company Limited regarding a possible privatisation of Yancoal.
Yanzhou's proposed exchange ratio under the proposal is 0.91 Yanzhou CDIs for every Yancoal ordinary share held. This is a 30% premium to the 60 calendar day volume weighted average price.
Yancoal operates the Moolarben mine near Mudgee in New South Wales, along with the Ashton, Austar, Abel, Tasman and Donaldson mines in the Hunter Valley; and Duralie and Stratford in the Gloucester region north of Newcastle.
Yancoal also has investments in two coal terminals, being Wiggins Island in Gladstone and NCIG in Newcastle.
Key aspects of the proposal is to acquire via a scheme of arrangement the remaining 22% of Yancoal's issued shares from its minority shareholders in exchange for Yanzhou CDIs.
Yanzhou has made clear in conveying Yanzhou's interest in the proposed transaction that the proposal is indicative, non binding and not capable of acceptance nor does it constitute a binding offer by Yanzhou.
The proposal will be subject to discussions and negotiation between Yanzhou and Yancoal.
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