AFP reported that Yancoal Australia, a new firm created by the merger of Gloucester Coal and China’s Yancoal, listed on the Australian Stock Exchange in the bourse’s biggest debut in 18 months.
Yancoal Australia, worth some AUD 5.4 billion, debuted at AUD 1.50, describing itself as one of the largest pure play coal companies in Australia. It closed at AUD 1.34 after a slow first session, with only 288,441 shares changing hands.
Yancoal’s major shareholder, with 78% of stock, is parent company Yanzhou Coal, one of China’s largest international mining groups by market capitalisation with listings on the Shanghai, New York and Hong Kong exchanges.
Mr Li Weimin chairman of Yancoal Australia said that “The listing is the most significant milestone for both Yancoal and Yanzhou. Yancoal’s listing confirms our commitment to and faith in the Australian coal industry and future development in Australia.”
Treasurer Mr Wayne Swan described Yancoal’s debut as a huge vote of confidence in Australia’s resources sector and its wider economy.
The Australian Stock Exchange said it was the biggest listing since Westfield Retail Trust listed at AUD 8.4 billion in December 2010 or rail company QR National the preceding month, worth AUD 6.2 billion.
Canberra gave the Gloucester Yanzhou tie up the green light in March 2012 and it was approved by Gloucester shareholders last month, paving the way for the newly merged coal titan, with coal resources of some 3.4 billion tonnes. The merged company has forecast production of 25 million tonnes per annum by 2016.
State owned Yanzhou, China’s third largest listed coal company by output, will have to reduce its stake in Yancoal to less than 70% by the end of 2013 under foreign investment conditions laid down by Australian regulators.
Source – AFP