Noble presses Yanzhou to raise Yancoal offer

[MELBOURNE] China's Yanzhou Coal Mining Co is under pressure to raise its US$191 million offer to take its Australian Yancoal unit private from Singapore's Noble Group, a key Yancoal shareholder, people familiar with the process said.

Yanzhou proposed in July to buy out the 22 per cent of Yancoal Australia that it does not already own at A$0.91 (S$1.08) a share, but it has yet to make a formal offer.

Hong Kong-based commodities trader Noble, which owns more than half the minority shares and could block the deal from going ahead, has put a proposal to Yanzhou for a higher offer, two people familiar with the process said.