Credit Suisse has labelled Yanzhou Coal Mining's offer for Yancoal Australia an opportunistic take-under. The broker said Yanzhou's offer of 0.91 Yanzhou CDIs per Yancoal share was worth about 69c a share, a 1c discount to Yancoal's closing price of 70c. The main question is whether Yanzhou can secure FIRB approval given the existing conditions relating to the Yanzhou-Felix merger in 2009 and the Yanzhou-YAL merger in 2012. BoA Merrill Lynch analysts say FIRB approval is likely to waive previous conditions given the weak outlook for coal and the plethora of coal assets currently on sale.
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