Sign of the Times: Yancoal Gets Few Takers

first_imgSign of the Times: Yancoal Gets Few Takers FacebookTwitterLinkedInEmailPrint分享The Australian:Yancoal Australia’s $US2.35 billion ($3bn) equity raising has met with next to no interest from institutional and retail shareholders, leaving its underwriters and Chinese backers on the hook for almost the entire amount.Yancoal, which needed the cash to complete its acquisition of Rio Tinto’s Coal & Allied business in NSW, only attracted $US4 million worth of applications from its existing non-Chinese share register while institutional investors applied for just $US59m of the more than $US1.3bn in entitlements up for offer under a bookbuild at the weekend.The weak appetite means Yancoal’s existing major shareholder, Chinese state-owned group Yanzhou Coal Mining Company, will take up the full $US1bn in new shares to which it had committed while the bookbuild’s underwriters — China Shandong Investment, Cinda International and Glencore — will take up the remaining $US1.28bn.While there was an expectation going into the raising that Yancoal would have to rely on its underwriters for much of the funding, the response was nevertheless weaker than expected.The flat investor response to the raising has been blamed on a confluence of factors, including Yancoal’s poor record of performance in Australia (it has recorded four straight years of losses totalling more than $1.6bn), the dominant position held on Yancoal’s share register by Chinese interests, and the broader softening of investor interest in coal generally.The raising also took place at a time when many investors are tipping a fall in coal prices following a strong 12 months for the commodity.In one potential sign that the coal market may be nearing a peak, veteran coal investor Tony Haggarty yesterday revealed he had just sold almost 2 million shares in coal producer Whitehaven Coal for $6.4m, cashing out a portion of his holdings at a time when Whitehaven shares are at their highest level since 2013.Coal heavyweight Glencore, which is helping fund the Yancoal acquisition, yesterday announced it was putting up for sale its Rolleston thermal coalmine in Queensland. The sale process for the mine, which produced 13.3 million tonnes of saleable coal in 2016, is being handled by Merrill Lynch.Contango Asset Management managing director George Boubouras told The Australian the combination of Yancoal’s China-heavy share register and the wider shift away from coal among many investors were probably to blame for the weak uptake.More: Yancoal’s $3bn equity raising shunned by investorslast_img read more

Black Cats line up Angeloni

first_imgSunderland manager Paolo Di Canio is closing in on a move to appoint Inter Milan’s Valentino Angeloni as his new head of scouting. However, the former Swindon boss has indicated he intends to bring in six or seven new faces this summer to re-shape a squad which only just avoided relegation last season, and he is keen to establish a new scouting system to facilitate a long-term rebuilding programme. Owner and chairman Ellis Short invested heavily in Scotland striker Steven Fletcher and England winger Adam Johnson last summer, handing then manager Martin O’Neill a total of around £22million to land his two main targets. However, Short is keen to adopt a more sustainable approach by, much like derby rivals Newcastle, targeting young talent with sell-on value. Angeloni was himself a professional player and made more than 350 career appearances after coming through the ranks at Sampdoria. He went on to work at Cremona, Torino and Udinese, but moved to Inter in March last year to head up the club’s scouting set-up. The Black Cats have already been actively sounding out potential signings with Basle midfielder Cabral and Maritimo defender Valentin Roberge among their initial targets. Press Associationcenter_img The Black Cats recently dispensed with the services of the vastly-experienced Bryan “Pop” Robson, and it is understood that Angeloni is being lined up as his replacement. Di Canio has wasted little time in recruiting his own staff having arrived at the Stadium of Light along with assistant manager Fabricio Piccareta and goalkeeping coach Domenico Doardo, and compatriot Roberto De Fanti is expected to take on the role of director of football. last_img read more