The Motley Fool

Yancoal Australia Ltd share price rockets 40% higher

Much to the delight of its shareholders, the Yancoal Australia Ltd (ASX: YAL) share price has been the best performer on the ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) today.

In afternoon trade the coal miner’s shares are up 40% to 38 cents.

Why has it jumped?

This morning the company announced that Rio Tinto Limited (ASX: RIO) shareholders have approved the sale of its Coal & Allied business to Yancoal for US$2.45 billion.

Rio will also receive $240 million via unconditional guaranteed royalty payments, payable over five years.

According to today’s release, Yancoal expects the acquisition to complete in the third quarter. When it does it will make the company the largest pure-play coal producer in Australia.

The coal miner’s shares have now gained in excess of 340% in the last 12 months.

The Rio Tinto Limited share price is flat on the news.

NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!….

Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading over 40% off its high, all while offering a fully franked dividend yield over 3%...

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.


Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.