Latest Yanzhou Coal Mining Company Limited (YZC) company news
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Glencore Plc’s quest for a piece of Rio Tinto Group’s Australian coal business may not be over yet.
The Swiss commodity giant’s planned partner to manage the assets, Yancoal Australia Ltd., faces a challenge from a minority shareholder concerned that its stake will be diluted by the $2.5 billion equity raising needed to fund the deal.
Hong Kong-based hedge fund Senrigan Capital Group said the proposed raising by Yancoal, which is majority owned by China’s Yanzhou Coal Mining Co., is prejudicial to minority shareholders and would strengthen Yanzhou’s voting power, according to a statement Wednesday from Australia’s Takeovers Panel. The panel hasn’t decided whether to pursue proceedings, it said.
The challenge may be another setback for Glencore’s ambitions to control Rio’s assets in Australia’s Hunter Valley, which are situated near its own operations. Glencore failed twice to outbid Yancoal, before the two companies announced a surprise $1.1 billion deal last month that would split the spoils between them. The move by Senrigan, which spoke out against the financing in June as well, has the potential to delay or even derail the deal, according to David Lennox, an analyst at Fat Prophets in Sydney.
“It brings a level of uncertainty to the table, which I’m sure Rio would rather not have to deal with,” said Lennox. “Glencore will be sitting back and watching this closely. They might be getting their pencil out and doing the numbers just in case this Yancoal financing falls over. They could come back and even strike a different deal.”
Yancoal and Glencore didn’t immediately respond to requests for comment. Rio declined to comment.
Rio agreed to sell its Australian coal mines to Yancoal for $2.69 billion in June after the protracted battle with Glencore. Rio chose Yancoal because its offer was seen as facing less regulatory scrutiny, despite some uncertainty over its financing of the deal.
Yancoal’s $2.5 billion equity raising will be split between Yanzhou, which will contribute $1 billion, and two Chinese investment groups, China Cinda Asset Management Co. and Shandong Lucion Investment Holdings Group Co., which have committed a further $1 billion to the entitlement offer. Glencore will provide $300 million.
Singapore-listed commodities trader Noble Group Ltd., which owns a 13.2 percent stake in Yancoal, last week said it may also file an objection. A Noble spokesman did not immediately respond to an emailed request for comment Wednesday.
Noble and Senrigan have worked together before to oppose a restructuring by Yancoal. The miner was forced in 2014 to halt the sale of $2.3 billion in securities after the panel ruled in their favor. Senrigan has an economic interest in 5.2 percent of Yancoal shares through cash-settled equity swaps.
Yancoal Australia rose 7.7 percent to close at 14 Australian cents in Sydney, while Yanzhou Coal Mining’s shares in Hong Kong closed up 2.9 percent at HK$8.20.
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China-backed Yancoal Australia Ltd. will raise $2.5 billion in equity to fund the purchase of Rio Tinto Group’s Australian coal assets, with its parent Yanzhou Coal Mining Co. tipping in $1 billion.
Glencore Plc, which will jointly operate some of Rio’s Coal & Allied operations in the Hunter Valley with Yancoal, will contribute $300 million. Two Chinese investment groups, China Cinda Asset Management Co. and Shandong Lucion Investment Holdings Group Co., committed a further $1 billion to the entitlement offer.
The Rio purchase will catapult Yancoal into becoming Australia’s largest pure-play coal producer and give it a stake in the owner of two terminals at the port of Newcastle, the country’s main conduit for thermal coal. The deal comes at a time when major consumers including China plan to curb use primarily due to environmental concerns.
“The strategic acquisition of Coal & Allied will redefine our position within the global coal marketplace and strengthen Yancoal Australia for the future,” Yancoal Chairman Xiyong Li said in a statement Wednesday.
The proposed equity raising may yet be challenged by Singapore-listed commodities trader Noble Group Ltd., which owns a 13.2 percent stake in Yancoal and won’t participate in the raising. It may lodge an objection with Australia’s Takeovers Panel over concern the deal will dilute the holding of minority shareholders, Noble said on Wednesday.
A similar objection was raised by Hong Kong-based hedge fund Senrigan Capital Group in June. Senrigan was concerned by the size of the financing needed for Yancoal’s Coal & Allied deal as well as the impact a planned equity raising would have on the value of stakes held by minority shareholders.
The backing of Yanzhou, China’s fourth-biggest coal producer that owns 78 percent of the Australia-listed unit, and two Chinese investment funds means the financing side of the deal looks solid despite Yancoal’s modest market capitalization of about A$400 million ($318 million), according to Fat Prophets resources analyst David Lennox. “If things went sour, there would be some back room negotiating” to help secure the terms of the transaction.
Yancoal declined 36 percent to 25 Australian cents at the close in Sydney, its biggest fall since listing in June 2012. Yanzhou gained 1.7 percent to HK$7.78 in Hong Kong.
Rio agreed to sell its Australian coal mines for $2.69 billion to Yancoal in June after a protracted battle with Glencore. Rio chose Yancoal because its offer was seen as having less regulatory hurdles despite some uncertainty over its financing of the deal. On July 27, Glencore announced a surprise $1.1 billion deal with Yancoal for a stake in the coal assets.
A Deletion from the S&P/TSX Global Mining Index
TORONTO , Feb. 14, 2017 /CNW/ - S&P Dow Jones Indices Canadian Index Services will make the following changes in the S&P/TSX Canadian Indices:
The New York Stock Exchange has announced that the ADR's of Yanzhou Coal Mining Co. Ltd. will be delisted from the exchange after the close of trading on Thursday, February 16, 2017 , for failure to meet ongoing listing requirements. The ADR of Yanzhou will be removed from the S&P/TSX Global Mining Index after the close of trading on Thursday, February 16, 2017 .
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Company aims to reduce complexity and costs. H Shares will continue to trade on the Hong Kong Stock Exchange and in the US over the counter as Level 1 ADRs
Financial reporting to be provided in accordance with SEC Rule 12g3-2(b)
NEW YORK, Jan. 24, 2017 /PRNewswire/ -- Yanzhou Coal Mining Company Limited (the "Company") (NYSE: YZC; HKSE: 1171) announced today that it intends to delist its American Depositary Shares ("ADSs") representing the Company's H Shares from the New York Stock Exchange ("NYSE") and to deregister and terminate its reporting obligations with the Securities and Exchange Commission ("SEC"). The Company's Board of Directors approved the decision at its meeting on January 24, 2017. The Company expects the delisting to become effective on or about February 16, 2017 following the close of the market in New York City." data-reactid="13">NEW YORK, Jan. 24, 2017 /PRNewswire/ -- Yanzhou Coal Mining Company Limited (the "Company") (NYSE: YZC; HKSE: 1171) announced today that it intends to delist its American Depositary Shares ("ADSs") representing the Company's H Shares from the New York Stock Exchange ("NYSE") and to deregister and terminate its reporting obligations with the Securities and Exchange Commission ("SEC"). The Company's Board of Directors approved the decision at its meeting on January 24, 2017. The Company expects the delisting to become effective on or about February 16, 2017 following the close of the market in New York City.
The principal purpose of delisting is to reduce complexity in financial reporting and administrative costs. In particular, the Company's Board of Directors believes that the costs of compliance with U.S. periodic reporting requirements and other obligations arising out of its NYSE listing are no longer justifiable in light of the thin level of trading in the ADSs. The Company remains committed to serve its investor base in the U.S. and plans to maintain an unlisted American Depositary Receipt program on a Level I basis, which may enable investors to hold their H Shares in the form of ADSs and to trade their ADSs in the United States in the over the counter market. The Company's H Shares will continue to be traded on the Hong Kong Stock Exchange.
Today, the Company will provide written notice to the NYSE of its intent to delist. The Company plans to file the related Form 25 with the SEC on or about February 6, 2017 and expects delisting to become effective ten days later. From and after that time the Company's ADSs will no longer be traded on the NYSE.
Once the delisting has become effective and the Company meets the criteria for deregistration, it intends to file Form 15F with the SEC in order to terminate registration of the H Shares and the ADSs representing the H Shares under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Deregistration is expected to become effective 90 days after the filing of Form 15. While the Company's deregistration application is pending, its reporting obligations under the Exchange Act will be suspended and, upon effectiveness of deregistration, such reporting obligations will terminate.
The Company reserves the right, for any reason, to delay these filings or to withdraw them prior to their effectiveness, and to otherwise change its plans in this regard.
www.yanzhoucoal.com.cn." data-reactid="18">The Company will continue to make English translations of its annual reports, financial statements, financial press releases and the other information required by SEC Rule 12g3-2(b) available on its website at www.yanzhoucoal.com.cn.
By order of the Board
Yanzhou Coal Mining Company
Chairman of the Board
Zoucheng, Shandong Province, the PRC
24 January, 2017" data-reactid="22">24 January, 2017
As at the date of this announcement, the directors of the Company are Mr. Li Xiyong, Mr. Li Wei, Mr. Wu Xiangqian, Mr. Wu Yuxiang, Mr. Zhao Qingchun, Mr. Guo Dechun and Mr. Guo Jun, and the independent non-executive directors of the Company are Mr. Wang Lijie, Mr. Jia Shaohua, Mr. Wang Xiaojun and Mr. Qi Anbang.
About the Company:
For more information, please contact:
Yanzhou Coal Mining Company Limited
Zhao Qingchun, Director
Tel: +86 537 538 3310
Address: 298 Fushan South Road, Zoucheng, Shandong Province, 273500 PRC
Certain statements contained in this announcement may be regarded as forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve inherent risks and uncertainties that may cause the actual performance, financial condition or results of operations of the Company and the availability of a trading market for its securities to be materially different from any future performance, financial condition, results of operations or trading market implied by such forward-looking statements. Further information regarding these risks and uncertainties is included in the Company's filings with the U.S. Securities and Exchange Commission. The forward-looking statements included in this announcement represent the Company's views as of the date of this announcement. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this announcement.
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
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