Yancoal completes US$1.85B Kestrel mine acquisition
- Yancoal completes the acquisition of an 80% interest in Queensland's Kestrel coal mine.
- Shares traded lower on the day of the settlement announcement.
- Funded via cash reserves and a US$1.2 billion loan facility.
Yancoal Australia (ASX:YAL) completed its acquisition of an 80% interest in the Kestrel coal mine for an upfront cash payment of US$1.85 billion.
The transaction follows the original deal signed on April 14 to acquire the entire share capital of Kestrel Coal Group.
The upfront payment was funded through available cash reserves and an initial drawdown from a five-year syndicated US$1.2 billion acquisition loan facility.
The agreement also includes contingent cash payments up to US$550 million if benchmark coal prices exceed US$225 per tonne over the next five years.
Following the announcement, the Yancoal share price was down at $5.64.
Yancoal will recognise its financial interest in Kestrel's production, revenue, and earnings starting from Oct. 1.
The company also maintains an undrawn US$200 million five-year working capital facility to support liquidity requirements
