Yancoal announces Global Offering and entitlement offer

26/11/2018 09:28:00

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Yancoal (ASX:YAL) has announced it's in the process of commencing a fully underwritten Global Offering at an offer price of HK$23.48 to $25.84 per share.

The Australian based coal producer and developer says provided the global offering is a success it will also undertake an Entitlement Offer at the same offer price, comprising an Institutional and Retail offer.

As part of the global offering Yancoal has entered into a cornerstone investment agreement with Shaanxi Coal, and, Chemical Industry Group Co..

The cornerstone investor has agreed to subscribe for about US$40 000 000 worth of shares.

Proceeds from the offers will be used to repay outstanding debts of Yancoal and it subsidiaries, and, fund future growth opportunities.

Shares in Yancoal (ASX:YAL) closed 1.61 per cent lower to $3.06.