Yanzhou’s War Chest Gets Fatter on New M&A Model 兖州煤业将为中国同行树立榜样

By newsdoug on May 25, 2011

It looks like Yanzhou Coal’s (HKEx: 1171; Shanghai: 600188) cash pot is getting bigger by the day, even as it seeks out global assets to fire up China’s energy-hungry economy. Already flush with cash it was holding for its failed $4 billion bid for Australia’s Whitehaven Coal (English article), Yanzhou is now preparing to raise an additional $1 billion as it prepares to float at least a third of its Australian unit by year end, according to media reports. (English article) The float was actually a condition laid down by Australia for allowing Yanzhou’s purchase of Felix Resources in 2009, in what was then China’s biggest takeover of an Australian company. The fact that the spin-off plan is moving forward makes this look like an interesting model for Chinese Yanzhou mining for global coal companies like Yanzhou and rivals Shenhua (HKEx: 1088; Shanghai: 601088) and China Coal Energy (HKEx: 1898; Shanghai: 601898) when they go into Western markets wary of selling major natural resources to state-controlled Chinese firms. In effect, such a deal structure means locally-based investors get to retain a major share in such assets after they get sold, possibly easing concerns over too much foreign ownership. Considering the big cash reserves that Yanzhou and Shenhua now hold, look for some more interesting and creative M&A coal resource deals — possibly even in sensitive North American markets — as early as the end of this year.

Bottom line: Yanzhou’s planned IPO for its Australia assets, if successful, will serve as a model for similar M&A by Chinese energy firms in sensitive Western markets.

看样子兖州煤业<600188.SS> <1171.HK>实在不差钱，虽然它在四处寻找海外并购对象。据媒体报导，以40亿美元求购澳大利亚煤企Whitehaven Coal的计划落空後，兖州煤业现金本已十分充盈，如今又打算在年底前将其澳大利亚业务的至少三分之一推到股票市场，从而再募集10亿美元。其实此次上市计划是2009年兖州煤业收购Felix Resources时澳大利亚方面提出的条件，当时它创下中国公司收购澳大利亚企业的收购规模纪录。此次分拆上市计划能够推进，说明这可以成为兖州煤业、中国神华<1088.HK> <601088.SS>、中煤能源<1898.HK> <601898.SS>等中国煤企寻求收购西方国家资源性企业时可供参考的有趣模式。西方企业被中国公司收购後，此种上市模式让西方本地投资者能够保住所涉资产的一大部分，从而可能减轻当地对中国国有企业控制太多西方资产的担心。鉴於兖州煤业和中国神华当前的巨额现金储备，也许最早在今年年底，中国煤企就能敲定一些更有意思也更具创意的煤企并购案，甚至有可能发生在敏感的北美市场。

一句话：兖州煤业将其澳大利亚资产上市的计划如果成功，将为中国其他能源企业在西方市场的类似并购行为树立榜样。