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Bloomberg reported that Australia’s foreign investment regulator said that Yanzhou Coal Mining Co. Ltd. (NYSE:YZC) must abide by an agreement to lower its stake in Yancoal Australia Ltd. (ASX:YAL). The company is supposed to make 30 percent of Yancoal’s shares available to Australian investors by the end of the year.
Bloomberg reported that Australia’s foreign investment regulator said that Yanzhou Coal Mining Co. Ltd. (NYSE:YZC) must abide by an agreement to lower its stake in Yancoal Australia Ltd. (ASX:YAL). The company is supposed to make 30 percent of Yancoal’s shares available to Australian investors by the end of the year.
As quoted in the market news:
Yanzhou Coal, which owns 78 percent of Yancoal, in July proposed to purchase the rest of the company from shareholders including Noble Group Ltd., a plan that ran counter to FIRB’s requirement. The regulator’s stance means Yanzhou Coal has less than two months to sell at least 8 percent of Yancoal.
Yanzhou Coal’s agreement to cut its stake stems from its purchase of Felix Resources Ltd. for A$3.3 billion ($3.1 billion) in October 2009. After buying Felix, Yanzhou Coal renamed the company Yancoal. At the time, FIRB ruled that Shandong-based Yanzhou Coal must list a minimum of 30 percent of its Australian by the end of 2012.