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Yancoal Australia plans to raise USD 800 million in Hong Kong

Coal News - Published on Mon, 18 Jun 2018

Image Source: steelguru.com
Economic Times quoted people familiar with the situation as saying that ASX listed Yancoal Australia is planning a dual primary listing in Hong Kong this year which could raise about USD 600 million to USD 800 million.

The people said that Yancoal Australia, which is 65.5% owned by Chinese coal giant Yanzhou Coal Mining, is working with advisers on the transaction, which is expected to hit the market in the fourth quarter of the year.

The company hopes to improve its liquidity in the secondary markets through a Hong Kong listing, which is closer to the Chinese investor base, says one of the people. As of June 14, the 90-day average of Yancoal's daily trading volume in Australia was 840,072.02 shares, according to Thomson data.

On June 14, only AUD 427,800 (USD 323,290) of Yancoal shares changed hands on ASX. A dual listing in Hong Kong will allow Yancoal to be closer to its Chinese shareholders, said another person close to the deal.

Apart from Yanzhou Coal, Cinda International and China Shandong Investment own respective 16.7% and 5.7% stakes in Yancoal. A spokesman from Yancoal said the company would not comment on market speculation when contacted by IFR.

Yancoal, the Australia unit of Yanzhou Coal, listed on the Australian Securities Exchange on 2012 after merging with Gloucester Coal, according to Yancoal's website.

Last September, Yancoal raised USD 2.35 billion from a 23.6-for-1 rights issue to fund its acquisition of Coal and Allied Industries from subsidiaries of Rio Tinto. Troubled commodities trader Noble Group and one other minority shareholder tried to block the highly dilutive offering, but failed.

Source :

Posted By : Amom Remju on Mon, 18 Jun 2018
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