Yanzhou Coal takeover bid accepted by Felix directors

Yanzhou Coal Mining’s US$2.95 billion takeover bid for Felix Resources was accepted by the Australian firm’s directors on Friday, the Wall Street Journal reported. The deal would be the largest takeover of an Australian company by a Chinese firm to date, and will still require approval from both the Australian Foreign Investment Review Board and Felix shareholders. However, some observers predict that increased diplomatic tensions between the two countries may complicate the approval process. Critics have also voiced concerns about rising Chinese investment in Australia’s mining sector. Additionally, the final bid of US$14.9 per share, is substantially less than the US$20.6 Felix shareholders had been told to expect. Yanzhou is offering US$14.29 in cash for each Felix share, a dividend of US$0.84 per share, and a share-based distribution worth US$0.04 for each share in Felix subsidiary, South Australian Coal.