July 8 (Bloomberg) -- Yanzhou Coal Mining Company Ltd. has proposed privatizing its 78 percent-owned unit Yancoal Australia Ltd. and listing depository receipts on the Australian Stock Exchange, the company said.
The Shandong-based miner will use its Hong Kong-traded shares as underlying security for the depository receipts and will offer 0.91 depository receipts for every Yancoal Australia share it doesn’t already own, according to a statement to the Hong Kong Exchange today.
“The proposed transaction, if implemented, will further increase the company’s interest in the expandable operating mines operated by Yancoal Australia and coal resources in Australia,” Yanzhou Coal said in the statement.
Yanzhou Coal on May 19 said it hired Deutsche Bank AG and UBS AG as joint global coordinators for a planned sale of dollar-denominated subordinated securities, according to a statement to the Hong Kong stock exchange.
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