News

02/08/17

G+T advises on biggest equity raising in 2017

Gilbert + Tobin is advising Yancoal Australia Limited’s (Yancoal) Independent Board  Committee (IBC) on the company’s US$2.5 billion capital raising announced last night to fund its acquisition of Coal & Allied from Rio Tinto – the largest capital raising in Australia in 2017 to date.

Yancoal today announced a US$2.5 billion (A$3.125 billion) capital raising comprising a 23.6 for 1 pro rata renounceable entitlement offer to raise approximately US$2.35 billion together with a $150 million placement to strategic investors (Capital Raising) to fund Yancoal’s acquisition of Coal & Allied Industries Limited (C&A) from Rio Tinto Limited (Acquisition). The IBC oversaw the formulation of the Capital Raising to ensure that it was undertaken independently and in the best interests of all of Yancoal’s shareholders.

Gilbert + Tobin previously announced in January this year that it was advising the IBC in relation to the Acquisition, which will more than double Yancoal’s coal production and transform it into Australia’s largest pure-play coal producer. Notwithstanding two rival proposals submitted by Glencore since that time, the Acquisition is expected to complete in September this year.

As part of the Acquisition, Yancoal has also agreed to form a joint venture with Glencore under which Glencore will acquire a 49% interest in Hunter Valley Operations (with the remaining 51% held by Yancoal via C&A) (Glencore JV).

Gilbert + Tobin provided independent advice to IBC on all aspects of the Capital Raising, the Acquisition and the Glencore JV.

Lead partner and co-head of Gilbert + Tobin’s Corporate Advisory practice Costas Condoleon says he is pleased to be involved in the landmark deal and to achieve a successful outcome for the IBC.

“We are thrilled to have brought our deep corporate and energy expertise to advise Yancoal’s independent directors on this complex and transformative deal,” Costas says.

The team was led by Costas Condoleon and is supported by lawyers Kevin Ko, Annabel Humphreys, Wes Bainbridge and Megan Coffey, with specialist support from partners Christopher Flynn, Crispian Lynch, Simon Lynch and lawyer Nicholas Lowe.

Gilbert + Tobin’s Corporate Advisory team is consistently ranked at the top of the M&A and ECM league tables and is 1 of only 3 firms to be ranked number 1 in M&A, ECM and private equity by Chambers Asia Pacific 2017.

 

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