News: RIO Rio Tinto says to sell Coal & Allied unit for up to $2.45 bln

Jan 24 (Reuters) - Rio Tinto Plc RIO.L :

• Rio Tinto agrees sale of Coal & Allied
• Has reached a binding agreement for sale of its wholly-owned australian subsidiary coal & allied industries limited to yancoal australia limited for up to $2.45 billion comprising
• An initial $1.95 billion cash payment, payable at completion
• $500 million in aggregate deferred cash payments, payable as annual instalments of $100 million over five years following completion
• After sale is completed, Rio Tinto will also be entitled to potential royalties.
• Prior to 24 Feb 2017, Yancoal Australia is entitled to elect an alternative purchase price structure of a single cash payment at completion of $2.35 billion
• Transaction subject to conditions being satisfied, including approvals from australian government, chinese regulatory agencies and NSW government
• It is expected that transaction will complete in second half of 2017