According to The Australian Financial Review, acquisitive private equity firm EMR Capital has found some vindication for the $US2.25 billion price tag it put on Rio Tinto's Kestrel coal mine this year, with Japanese giant Mitsui declining an opportunity to sell its stake in the same mine for an equivalent price.
Mitsui owns 20 per cent of Kestrel and, like most minority shareholders in mining joint ventures, had a "tag-along" right, which meant it could force the acquirer of Rio's 80 per cent stake in Kestrel to acquire its stake as well.
Most observers expected Mitsui to exercise that Kestrel tag-along right, given fellow Japanese trading giant Mitsubishi tagged-out of its Hunter Valley coal stakes when Rio sold those assets to Yancoal in 2017.
Mitsui could have sold its 20 per cent stake to EMR and its syndicate for about $US560 million under the tag-along right, but confirmed on Friday that it wanted to retain its stake in Kestrel and forge a new partnership with EMR.
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