all for fun just modelling I were YAL modeller for bid strategy...

all for fun just modelling I were YAL modeller for bid strategy

Yancoal’s Likely Bid Strategy for Anglo American Assets

Yancoal is likely to follow a structured bid strategy similar to its approach in 2017 but with certain adjustments:

• Flexible Payment Terms: Yancoal may structure its bid with an upfront cash payment combined with deferred payments or performance-based clauses. This could make the bid more attractive by mitigating the risks associated with the Grosvenor fire while ensuring they do not overcommit their cash reserves.
• Leveraging Debt or Parent Company Support: Just as Yancoal sought external financing and backing from Yanzhou Coal Mining in 2017, it may do so again to enhance its bid, especially given the competition from Glencore and other interested parties
• Bid Size: Given Yancoal’s financial capacity and its competitive environment, the bid will likely fall within the $3.5 billion to $4 billion range, potentially reaching the upper end if Yancoal can secure additional financing or guarantees from its parent company.