Yancoal Australia not concerned for now over Noble's financial strength

Sydney

YANCOAL Australia said it was not concerned "at this stage" over the financial strength of its No 2 shareholder 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 to fund the purchase, valued at US$2.45 billion, of Rio's Coal and Allied division. Under that scenario, Noble would have to contribute about US$260 million to avoid dilution of its 13 per cent stake.