Landmark deal in terms of size, complexity and importance for Australian coal production.
Involved complex underwriting arrangements and considerations of relationships with Chinese SOEs.
Carefully planned structure of the transaction helped navigate circumstances that may otherwise expose client to the Takeovers Panel.
MinerEllison co-advised Yancoal Australia Limited's (Yancoal) US$2.5 billion (A$3.2 billion) equity raising, which provided funding for the acquisition of 100% of the shares in Coal & Allied from wholly-owned subsidiaries of Rio Tinto Limited.
The significant equity raising funded Yancoal acquisition of Coal & Allied (the number 1 global mining deal (by value) at the time) and helped catapult Yancoal into the position of Australia's largest producer by pure-play coal.
The firm advised on all aspects of the transaction, with primary responsibility of the offer document, the due diligence process and the underwriting and syndicate arrangements.
The capital raising was comprised of a 23.6 for 1 pro-rata renounceable entitlement offer to raise approximately US$2.35 billion and a fully committed share placement to strategic investors to raise US$150 million.
MinterEllison’s team was led by Partner Daniel Scotti. He was supported by Renee Doyle (Special Counsel) and Nicole Sloggett (Senior Associate).
“We are delighted to have assisted Yancoal on this significant, transformative and now, award-winning, transaction. The transaction was highly complex, involving cross-border issues and significant stakeholder management”
"We utilised our specialist team and knowledge gained from our long-standing relationship with Yancoal, collaborating closely with it and our co-advisers to deliver a successful transaction”.
The capital raising and strategic acquisition of Coal & Allied helped redefine Yancoal's position within the global coal marketplace as it:
Several unusual features of the capital raising contributed to its complexity and novelty.
The deal has been recognised with the following Awards:
“It's great to receive this recognition for being involved in some of the largest and most innovating deals in the Australian market – along with winning the Yancoal deal valued at A$3.2 billion, we also received recognition in the 2018 Australasian Law Awards with two other deals, the Ten Network Restructuring and the Boart Longyear Restructuring being recognised as finalists”
"The continued growth and momentum in our M&A practice is a testament to our extremely high performing line-up and the outstanding work we're doing with our clients, including our ASX100 clients, in helping them manage complex situations and deals."