Chinese approval for Felix takeover

The largest Chinese investment in Australia's resources sector to date has been approved by one of China's regulatory authorities.

The largest Chinese investment in Australia’s resources sector to date one step closer to completion, after the National Development and Reform Commission approved Yanzhou Coal’s takeover of Felix Resources.

In statement to the Hong Kong Stock Exchange, state-owned Yanzhou last week confirmed it had received a letter of consent from the commission.

The $3.5 billion offer for the Australian coal miner had already received the go ahead from the Foreign Investment Review Board (FIRB) and Yanzhou shareholders.

In a statement issued this morning, the Felix said it was still waiting on the remaining consent from the China Securities Regulatory Commission (CSRC).

“While the exact timing of the CSRC approval is not known, Felix expects this will occur shortly,” the company said. Felix’s shareholders are due to vote on the proposal at a scheme meeting tomorrow.

Under the terms of the deal, Yanzhou will pay $16.95 per share to acquire all of the Australian miner’s issued shares.

The Australian company has coal assets in New South Wales’ Hunter Valley and Queensland’s Bowen Basin, as well as a stake in the Newcastle Coal Infrastructure Group (NCIG) Terminal project.

The company also has tenements in South Australia’s Phillipson Basin.

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