Yanzhou Coal Mining receives regulatory approval to acquire Felix Resources

Update on December 9, 2009:

Yanzhou Coal Mining Company Limited, a China-based coal mining company, has received clearance from the China Securities Regulatory Commission to acquire all of the outstanding shares in Felix Resources Limited.

Felix is an Australia-based mining company engaged in the development and operation of coal and coal related assets.

Update on December 8, 2009:

The shareholders of Felix have approved the company's proposed acquisition by Yanzhou Coal Mining.

Update on October 30, 2009:

Yanzhou Coal Mining has received its shareholders approval to acquire all of the outstanding shares in Felix.

Update on October 23, 2009:

Yanzhou Coal Mining has received conditional approval from the Assistant Treasurer of Australia to acquire all of the outstanding shares in Felix.

In securing approval from Australia's center-left labor government, Yanzhou Coal Mining has agreed to operate its Australian mines through an Australian-based company, Yancoal Australia Pty., Ltd., and list that company on the Australian Securities Exchange by the end of 2012. By that time, Yanzhou Coal Mining will reduce its ownership in Yancoal Australia to less than 70%.

Update on October 12, 2009:

Yanzhou Coal Mining has resubmitted its application to acquire all of the outstanding shares in Felix to Australia's Foreign Investment Review Board.

Update on August 13, 2009:

Yanzhou Coal Mining has entered into a binding agreement to acquire all of the outstanding shares in Felix at a price of AUD16.95 ($14.12) per share in cash. The transaction is valued at approximately AUD3,333 million ($2,776.02 million).

Yanzhou Coal Mining will fund the transaction through its existing cash resources and bank borrowings. The Board of Directors of Felix has unanimously recommended its shareholders to vote in favour of the offer.

Announcement (April 27, 2009):

Yanzhou Coal Mining is in talks to acquire Felix.

Yanzhou Coal Mining will fund the acquisition through its cash and bank loans.

Rumor (December 4, 2008):

According to Reuters, The Australian Financial Review reported that Yanzhou Coal Mining is in talks to acquire Felix for more than AUD3,000 million ($1,931 million).

Citigroup, Inc., Deloitte Corporate Finance Advisory and Wilson HTM Corporate Finance Limited are acting as financial advisors, while Allens Arthur Robinson is acting as legal advisor to Felix. UBS Investment Bank is acting as financial advisor, while Corrs Chambers Westgarth is acting as Australian legal advisor to Yanzhou Coal Mining.

Deal Value (US$ Million) 2776.02
Deal Type                Acquisition
Sub-Category             100% Acquisition
Deal Status              Announced: 2009-04-27

Deal Participants

Target (Company)   Felix Resources Limited
Acquirer (Company) Yanzhou Coal Mining Company Limited

Deal Rationale

The transaction will consolidate Yanzhou Coal Mining's position in the Australian coal market and will provide expertise and funding capacity for the development of the Moolarben project and for future exploration and development.

Bid Premium ($ per share) 0.3

Related terms: acquisition, advisor, australia, bank, china, coal, coal mining, corporate, exploration, finance, foreign investment, government, investment bank, labor, legal, market, mining, securities