Rio Tinto Confirms Yancoal as the Preferred Buyer of its Thermal Coal Assets in Australia

The Rio Tinto board today confirmed its recommendation that shareholders vote in favour of the sale of Rio Tinto’s wholly-owned subsidiary Coal & Allied Industries Limited (“C&A”) to Yancoal Australia Limited (“Yancoal”). The recommendation follows consideration by the board of a revised offer from Glencore plc (“Glencore”) received on 23 June 2017, and a revised offer from Yancoal received on 25 June 2017 comprising further improved terms.
As quoted in the press release:

Rio Tinto chief executive J-S Jacques said “The revised offer from Yancoal of $2.69 billion offers compelling value to our shareholders for our Australian thermal coal assets. This sale process has been in progress for a long period of time and we believe it is in the best interests of our shareholders to take the greater certainty of Yancoal’s strong proposal.”

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