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.”