Yankuang Energy Group (01171): Yancoal Australia Successfully Completes Acquisition of 80% Interest in Kestrel Coal Mine

Yankuang Energy Group (01171) announced that, on the date of this announcement, Yancoal Australia has successfully completed the transaction announced on 14 April 2026 with EMR Capital Advisors Pty Ltd, Kestrel Coal (EMR) Limited, Adaro Capital Limited (ACL) (collectively, the Sellers) and EMR Capital Management Limited, to acquire 100% of the equity in Kestrel Group, thereby indirectly acquiring an 80% interest in the Kestrel Coal Mine (the Acquisition). Among them, the Sellers are the sellers of the shares in Kestrel Group, and ACL and EMR Capital Management Limited are the sellers of the warrants in Kestrel Group. The Kestrel Coal Mine is a large metallurgical coal asset located in the Bowen Basin in Queensland and has a long mine life. The upfront cash consideration paid upon completion of the Acquisition was US$1.85 billion, subject to customary completion adjustments, including the deduction of the US$40 million deposit paid upon signing of the transaction documents, as well as other provisional adjustments for net debt and working capital at completion. The consideration was funded by a combination of Yancoal Australia's available cash and the first drawdown of a five-year US$1.2 billion syndicated acquisition loan. Whether the contingent payment of up to a maximum aggregate amount of US$550 million is payable remains subject to whether the relevant benchmark coal price exceeds US$225 per tonne (nominal) in any one of the first five years following completion of the Acquisition. Yancoal Australia will recognise its share of Kestrel's production and economic benefits from 1 October 2026.