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<Research>BOCI Keeps Rating at Hold on YANKUANG ENERGY (01171.HK), Expects Subsidiary Acquisition to Slightly Enhance Earnings
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YANKUANG ENERGY (01171.HK)'s 62.3%-owned subsidiary, YANCOAL AUS (03668.HK), has agreed to acquire an 80% stake in Kestrel Coal Mine, with an upfront payment of US$1.85 billion and a contingent consideration of up to US$550 million within five years, BOCI published a research report saying. The transaction is still subject to a series of approval, and is expected to be completed by the end of 3Q26. Based on 2025 data, the deal will increase YANKUANG ENERGY's attributable coal output/ coal reserves by 2.6%/ 1.4% each, BOCI added. Assuming a US$1.4 billion bank loan for the transaction at an annual interest rate of 6%, the deal is expected to be approx. 4% accretive to earnings in 2027. Therefore, the broker kept rating at Hold on YANKUANG ENERGY's H-shares. Auto-translated by AI AASTOCKS Financial News |
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