newsCO.com.au–Rio shareholders set to back Yancoal bid

June 28, 2017

China’s Yancoal is set to seal a $US2.69 billion bid for Rio Tinto’s NSW coal operations on Thursday, with Rio Tinto shareholders expected to favour the deal.

Australian shareholders will vote on the proposal at an extraordinary general meeting in Sydney, after a similar meeting for London-based shareholders was completed on Tuesday.

The company will detail the final results after Thursday’s meeting is completed, given Rio Tinto’s dual-listed structure, but shareholders are widely expected to back the transaction.

The mining giant confirmed late on Monday that it would back Yancoal’s revised bid over a $US2.675 billion cash bid from commodities giant Glencore, as it looked to settle a bidding war for the coal assets that it doesn’t consider as core business.

Yancoal’s offer includes a cash payment of $US2.45 billion, plus another $US240 million in royalty payments.

The Coal & Allied business includes majority stakes in the Hunter Valley Operations and the Mount Thorley Warkworth mine, and a 36.5 per cent interest in the Newcastle Port coal export terminal.

If it is approved by shareholders, the sale is expected to be completed in the third quarter of 2017.

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