Australian shareholders in Rio Tinto have joined their London counterparts in approving the $US2.679 billion sale of its NSW thermal and soft coking coal mines to Yancoal of China.
Rio last week said it still favoured Yancoal since the deal was expected to be completed faster due to greater funding and regulatory certainty, leading Glencore to deliver a fresh US$2, 675 billion bid.
On Monday, Rio Tinto reiterated Yancoal as its preferred buyer for Coal & Allied Industries after Yancoal further improved its offer.More news: Facebook's Aquila making progress
The vote saw 97 percent of shareholders agree to the sale, but, as Rio Tinto Chairman Jan du Plessis revealed, did not specify how the funds would be used in the future: "What to do with the money?"
Rio Tinto's London shareholders voted on Tuesday.
"If the Rio Tinto board decides to reject Glencore's revised proposal, then the general meeting is expected to proceed as now scheduled", it added, with shareholders voting on the Yancoal deal.
In January, Rio Tinto agreed to sell C&A to Yancoal for $2.05bn.More news: Kevin Durant to release 'Still KD' documentary chronicling path to National Basketball Association title
Yancoal's offer includes a cash payment of $US2.45 billion plus another $US240 million in royalty payments.
Any transaction with Glencore is unlikely to be completed until the first half of 2018 at the earliest, Rio said.
Rio's Allied Coal business includes majority stakes in the Hunter Valley Operations and the Mount Thorley Warkworth mine, and a 36.5 per cent interest in the Newcastle Port coal export terminal.
Yancoal is controlled by Chinese state-owned Yanzhou Coal Mining Company, and already owns seven other Australian coal mines.More news: Oppenheimer Holdings, Inc. Boosts Darden Restaurants, Inc. (DRI) Price Target to $0.00
Both Yancoal and Glencore were forced to increase their offers above most analysts' valuations of about US$2 billion to remain in the running.
- Chinese army rejects Indian Army chief General Bipin Rawat's comments on war
- Malayalam actress assault case: AMMA backs actor Dileep
- Commissioner: Brexit could see €20bn annual hole in European Union budget
- Grocery Expenses won't Rise after the GST Rollout
- Vanguard Group Inc. Has $1.34 Billion Position in Marathon Oil Corporation (MRO)
- China Manufacturing Gauge Strengthens on Growing Global Demand
- Thrilling 'Baby Driver' a fun romp with a killer soundtrack
- Michigan Sues Flint for City's Decision on Drinking Water Contract
- California sheriff's deputy shot in face out of surgery
- Sohail Khan: Eid is time to share joy of togetherness