The Yancoal Australia Ltd (ASX: YAL) share price is pushing higher into the green on Friday after a good start to the day.
At the time of writing, the Yancoal share price is up 6% at $6.94 following a company announcement. Shares earlier touched $7.15 — their highest mark in 12 months.
Image source: Getty Images
What's up with the Yancoal share price?
The company posted a price-sensitive update informing investors that Yankuang Energy had terminated a potential deal to buy the remaining shares it didn't already own in Yancoal.
Yankuang already holds a 62.3% stake in the coal player. The offer it made was made based on historical performance of the Yancoal share price.
"Yankuang Energy wishes to update the respective shareholders and potential investors…that, in light of the recent market conditions, it will terminate the potential transactions," the Chinese company said in a statement.
Following the decision, it was stated that no person or entity, including Yangkuan, can announce an offer or possible offer for Yancoal within six months of today's announcement.
Investors don't appear concerned and have, in fact, rewarded Yancoal on the back of the news.
Shares jumped like a mare from the gates at Randwick in early trade today and have held the line since. Trading volume is within 95% of the four-week trading average at nearly 3 million shares.
Today's lift extends an impressive run for Yancoal these past 12 months, bringing its gains to 186% during that time.
The company hasn't looked like slowing down either, as seen in the chart above, and neither has the price of coal.
The price of the black rock just recently shot to 52-week highs itself and has turned sharply to trade at US$440/Tonne, just off its all-time high of US$460/Tonne yesterday.
