Yancoal not concerned 'at this stage' over shareholder Noble's financial woes

Noble on May 11 reported a shock quarterly loss and warned that it would not be profitable for the next two years.
Noble on May 11 reported a shock quarterly loss and warned that it would not be profitable for the next two years. PHOTO: REUTERS

SYDNEY (REUTERS) - Yancoal Australia said it was not concerned "at this stage" over the financial woes facing Noble Group and that its acquisition of Rio Tinto's coal mines did not hinge on funding from the commodities trader.

Yancoal is expected to raise nearly US$2 billion (S$2.7 billion) to fund the US$2.45 billion acquisition of the coal mines. Under that scenario Noble, Yancoal's No. 2 shareholder, would have to contribute about US$260 million to avoid dilution of its stake in the miner.

"From Yancoal's standpoint, I see no concern at this stage," Yancoal Australia chief executive Reinhold Schmidt told Reuters on Friday (May 26).

Noble on May 11 reported a shock quarterly loss and warned that it would not be profitable for the next two years.

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