HK Stock Market Move | Yankuang Energy Group (01171) drops more than 3%, planning to acquire 51% equity of Northwest Mining through agreement transfer and capital increase.

Yankuang Energy Group (01171) fell more than 3%, dropping by 3.28% as of the time of writing, to 7.37 Hong Kong dollars, with a turnover of 39.6959 million Hong Kong dollars. On the news front, Yankuang Energy Group announced that on April 8, 2025, the company entered into an agreement with the sellers (ZiKuang Group, LongKuang Group, XinKuang Group, and FeiCheng Coal Industry) and Northwest Mining. The company will acquire a total of 26% equity of Northwest Mining from the sellers for approximately 4.748 billion yuan. In addition, the company agreed to increase the capital of Northwest Mining by approximately 9.3176 billion yuan in cash. After the completion of this transaction, the company will hold 51% of the equity of Northwest Mining, and Northwest Mining will become a subsidiary of the company, with its financial performance being consolidated into the group. Following the completion of this transaction, the company's coal resources, coal reserves, and production of coal products will all be significantly increased, and its operational capabilities will continue to strengthen. According to the relevant mining rights valuation report issued by an independent valuer, after the completion of this transaction, the company's assessed resource quantity will increase by approximately 6.352 billion tons, recoverable reserves will increase by approximately 3.652 billion tons, and the production of coal products will increase by approximately 30 million tons.