The broker notes the company has received a non-binding takeover proposal from 78% shareholder Yanzhou Coal Mining, who now wants the remaining 22% it does not currently own. The offer price works out to around 69c per share, leading the broker to call the offer an “opportunistic take-under” given the last close at 70c.
Shareholder and court approval are neither a given and then you’ve got the FIRB. The latter will see Yanzhou jump through a number of hoops if it hopes to proceed. The Buy call and 80c price target are maintained.
Target price is $0.80.Current Price is $0.73. Difference: $0.07 – (brackets indicate current price is over target). If YAL meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).