Sydney, Australia, Dec 23, 2011 - (ABN Newswire) - Yanzhou Coal Mining (HKG:1171.HK - News) (SHH:600188.SS - News) (NYSE:YZC - News), one of China's biggest coal producer, has signed a proposal with Australia-based Gloucester Coal Ltd., with an aim to merge Gloucester Coal with Yanzhou Coal's wholly-owned Australian subsidiary Yancoal Australia.
The merged company will be owned 77% by Yanzhou Coal and 23% by Gloucester Shareholders who participate in the merger.
The combination of assets of Gloucester and Yancoal Australia is expected to create one of Australia's largest listed operating coal companies, with world-class coal production and export operations.
Singapore's Noble Group (PNK:NOBGF.PK - News), Gloucester's majority shareholder with a 64.5% stake, intends to vote its shareholding in favour of the merger proposal.
The proposal is subject to the completion of due diligence by both parties, a process which is currently underway, and expected to be completed by late February 2012.
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