The Bull

Friday 16

November, 201810:58 PM



Yancoal seeks dual listing in Hong Kong

Yancoal seeks dual listing in Hong Kong

Yancoal has applied for a dual listing on the Hong Kong Stock Exchange, and plans to raise funds to strengthen its operations.

Share |

By AAP 02.07.2018 09:48 AM

Coal miner Yancoal has applied for a dual listing on the Hong Kong Stock Exchange to increase liquidity in its shares and diversify its investor base.

The company - which says it remains committed to its listing on the ASX - also plans a capital raising, but did not give details.

Yancoal chief executive Reinhold Schmidt says the moves will help strengthen the group following its $US2.69 billion ($3.63 billion) acquisition of Coal & Allied from Rio Tinto last year.

Yancoal raised $3.1 billion from investors last year to fund the acquisition after beating commodities giant Glencore in a bidding war.

Chairman Baocai Zhang said the company is taking the next step following the Coal & Allied acquisition, which elevated the group as Australia's largest pure-play coal producer.

Yancoal operates five mines and manages another five across NSW, Queensland and Western Australia and has a 50 per cent stake in the Middlemount coal mine in Queensland.

"The Hong Kong Stock Exchange is one of the leading global stock markets with impressive access to a diversified and stable investor base from both local and overseas investment communities," Mr Zhang said in a statement.

Yancoal's biggest shareholder, Shanghai-listed coal giant Yanzhou Coal, plans to back the proposed 35 for 1 share consolidation.

The share consolidation will require shareholder approval at a meeting, which is expected to be held in September.

Yanzhou is connected to China's Shandong Provincial government through Shandong's 70 per cent controlling stake in Yanzhou's majority owner, Yankuang Group.

Archive
Markets
Index: Points Change Percent

PLEASE SUPPORT OUR SPONSORS, AUSTRALIA'S LEADING BROKERS:



© Copyright TheBull.com.au. All rights reserved.