The Yancoal Australia Ltd (ASX: YAL) share price won't be going anywhere on Thursday.
Australia's largest pure-play coal producer has requested a trading halt pending an announcement.
The Yancoal share price was $6.08 at yesterday's close. It's worth noting the shares touched a multi-year high of $6.19 yesterday following a bullish run for coal prices.
Why are Yancoal shares in a trading halt?
According to the release, the company is planning to make a statement relating to a potential market transaction.
The trading halt will remain in place until Monday 30 May, or when the announcement is made, whichever comes first.
Media speculation on what it's all about
While no details have been given by Yancoal, several media outlets have indicated what could be happening behind the curtain.
According to the Australian Financial Review, Yancoal may be subject to a potential bid by its parent company, Yankuang.
Yancoal ownership comprises Yankuang 63%, China Cinda Asset Management 16%, and Glencore 6%.
Should a non-binding proposal be offered, it could be one of the biggest takeovers on the ASX this year.
Yancoal reported a stellar result for FY21, with record revenue of $5.4 billion for the 12 months ending 31 December. This reflected an increase of 56% over the prior corresponding period.
In addition, Yancoal's net profit after tax (NPAT) surged to $791 million, well above the $1.04 billion loss in FY20.
Yancoal share price snapshot
Since this time last year, Yancoal shares have travelled north to register an incredible gain of 190%.
In 2022, the company's shares have zipped 133% higher on the back of positive investor sentiment as commodity prices boom.
Based on valuation grounds, Yancoal presides a market capitalisation of roughly $7.88 billion.
