High profile acquisition deftly valued by our exacting practices
Drawing on our deep knowledge of the mining industry coupled with expertise in international accounting standards
Yanzhou Coal, a major Chinese based coal mining company, listed in HK, New York and Shanghai, engaged in coal mining, transportation and sales, in December 2009 acquired Felix Resources, an Australian coal mining company, for AU$3.3 billion. The acquisition (at the time) was the largest mining company purchase in Australia by a Chinese based company.
Comprehensive valuation
Appraisal China was engaged by Yanzhou Coal and together with American Appraisal Australia provided a comprehensive independent valuation of all acquired tangible and intangible assets of Felix Resources for purchase price allocation purposes in accordance with IFRS 3 requirements and Australian tax consolidation obligations as well as proforma PPA exercise for HKEx Supplemental Circular Purpose. The job was an excellent demonstration of the close collaboration between American Appraisal's global network of offices.
Our appraisal encompassed the valuation of land, buildings, land improvements, mineral process facilities, machinery and equipment along with intangible assets, contracts, reserves, resources and goodwill/mineral rights. We also valued infrastructure assets such as tailings dams and haul roads.
Deep knowledge of the mining industry
Our valuation was scrutinised by the auditor's team of experts who were wholly satisfied with the process, rigor and professionalism American Appraisal had applied to the assignment permitting the company's directors to prepare their accounts with confidence.
The engagement drew on American Appraisal's valuation team's deep knowledge of the mining industry and the assets employed as well as leveraging our expertise in international accounting standards.
The ability of American Appraisal to undertake both the intangible and tangible asset valuations together was appreciated by our client, as it minimised repetition involved in briefing separate valuation firms. The valuation conclusions were adopted by our client and accepted by their auditors and tax advisors.
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