26 May Yancoal makes $710 million bid for Hunter Valley Operations
Yancoal Australia (ASX:YAL) has made a US$710 million offer to Mitsubishi Development for its 32.4% interest in the Hunter Valley Operations joint venture, as it bids to become Australia’s largest singular coal producing company.
The majority Chinese-owned group was obliged to make a tag-along offer to Mitsubishi under the sale and purchase agreement for its acquisition of the Coal & Allied coal mining division from Rio Tinto.
Mitsubishi has until June 23 to accept the tag-along offer, with the sale set to be finalised six months after the completion date.
Yancoal’s chief executive officer Reinhold Schmidt said: “The binding offer is another important milestone in the strategic acquisition of Coal & Allied and sends a clear message to all stakeholders of Yancoal Australia’s continuing investment into the local resources sector.
“With Rio Tinto’s support, we look forward to progressing the next steps in the Coal & Allied Transaction to become Australia’s largest independent coal producer.”
However, this latest offer has pushed Yancoal’s funding needs beyond the $3 billion, with concerns emerging over the firm’s ability to secure funding for the deal.