Yancoal Australia Falls on Yanzhou’s Decision Not to Privatize

Mining Weekly reported that Yancoal Australia Ltd.’s (ASX:YAL) share price dropped over 15 percent after Yanzhou Coal Mining Company Ltd. (NYSE:YZC), its parent company, decided against privatizing it.

As quoted in the market news:

Under the Chinese group’s proposal, Yanzhou had been set to acquire the remaining 22% of Yancoal’s issued shares from its minority shareholders in exchange for 0.91 Yanzhou CHESS depositary interests for every share held.

The proposed transaction had prompted the federal government to remove certain foreign investment sell-down conditions imposed on Yanzhou, which restricted its ownership in Yancoal.

Yancoal on Tuesday said that it had now been notified that Yanzhou would no longer pursue its privatisation bid, with the junior failing to give a reason.

Click here to read the full Mining Weekly report.