Ann: Yancoal debt prepayment of US$459 million, page-18

"Buyback is not good. As Chinese are majority shareholders they won't sell into buyback. That means they will buy out small shareholders which in turn gives Chinese owners more power."

With respect, that makes no sense:

1.) Chinese interests (Yankuang Energy - 62% shareholding) already control the company so whether their shareholding goes up a few more percent due to a buyback in which they don't participate really makes no difference their position of power.

2.) Sure, they can buy out small shareholders, but that's no different for every company on the ASX: if they offer me what is a good price for my shares, I am happy to sell to them (just like I am happy to sell any of my shares at what I think are good prices to anyone, for that matter). But they can't force me to part with my shares at a price that isn't to my liking.

(Of course, they could make use of the ASX's 3%pa "creep" provisions to get to 90.01% shareholding at which point they could compulsorily acquire the remaining 9.99% of the company without offering a takeover premium. But it will take them nine years to get there, and even if the share price does nothing for the next nine years, I fully expect I'll make back my capital a few times over.)

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