Original article by James Thomson
The Australian Financial Review – Page: 15 : 3-Aug-17
Glencore will buy $US300m worth of shares in Yancoal Australia via the latter’s $US2.5bn ($A3.1bn) equity raising, which will be used to finance its acquisition of Rio Tinto’s coal assets in the Hunter Valley. However, Noble Group claims that the capital raising will "oppress" minority shareholders such as itself, with their stakes to be diluted as a result of the new capital. Yancoal estimates that acquiring the Rio Tinto assets will generate synergies of $A120m to $A145m.
YANCOAL AUSTRALIA LIMITED – ASX YAL, GLENCORE PLC, NOBLE GROUP LIMITED, SENRIGAN CAPITAL GROUP LIMITED, COAL AND ALLIED INDUSTRIES LIMITED, YANZHOU COAL MINING COMPANY LIMITED, SHANDONG TAIZHON ENERGY COMPANY, GENERAL NICE DEVELOPMENT LIMITED, CINDA ASSET MANAGEMENT CORPORATION, SHANDONG LUCION INVESTMENT HOLDINGS GROUP COMPANY LIMITED, MITSUBISHI CORPORATION, BHP BILLITON LIMITED – ASX BHP