Shareholders on Monday voted in favour of Gloucester Coal's tie-up with China's Yancoal, paving the way for what is expected to be Australia's largest listed coal firm.
approval comes after the Australian government's foreign investments
watchdog gave the go=ahead to the deal in March and after the merger met
Hong Kong Stock Exchange regulations. It still requires Chinese
"Gloucester shareholders have voted overwhelmingly in favour of the scheme of arrangement for the proposed merger of Gloucester and Yancoal Australia Limited," the company said in a statement.
deal approved by 99.98 percent of votes cast will see the creation of a
newly-merged coal titan, with resources of some 3.4 billion tonnes and
valued by local media at $8-$9 billion.
Yancoal, the Australian
subsidiary of China's Yanzhou Coal, has described the new firm as the
"leading listed pure-play coal company in Australia and the
ninth-largest globally based on reserves."
The merger, yet to be
approved by the Victorian Supreme Court, gives energy-hungry China a
greater foothold in Australia's lucrative coal market and comes amid
consolidation in the sector.
If approved by the court on Friday,
Gloucester's shareholders are set to receive Aus$3.15 cash and a share
in the new entity for each of their shares.
parent company, will initially hold 78 percent of the new firm,
Singapore's commodities giant Noble 13 percent and Gloucester's
remaining shareholders nine percent.