The Takeovers Panel of Australia declined to conduct proceedings on the applications filed against Yancoal Australia Ltd.'s 23.6-for-1 entitlement offer priced at 10 cents per share to raise about US$2.35 billion, according to an Aug. 15 news release.
The applications were filed by Senrigan Capital Management Ltd. and Nicholas Taylor, and Noble Group Ltd. subsidiaries Mount Vincent Holdings Pty. Ltd. and Osendo Pty. Ltd.
In its application, Senrigan said the rights issue is highly dilutive and did not allow existing minority shareholders like itself "a reasonable and equal opportunity to participate."
However, the panel decided that "there was no reasonable prospect that it would make a declaration of unacceptable circumstances" as the entitlement offer allowed the shareholders to maintain their existing percentage interest in Yancoal and acquire additional shares.
Yancoal is raising the money to fund its US$2.69 billion acquisition of Coal & Allied Industries Ltd. from Rio Tinto.