The initial public offering (IPO) consisted of an offering of 333.33 million newly issued shares and 500 million vendor shares. The total shares included in the IPO amounted to 25% of Bayan’s share capital, with the amount offered likely to reach a maximum of 28.75% of the company’s share capital if the over-allotment option is exercised.
The shares acquired by Enel Investment Holding (EIH) will be subject to a lock-up period of 18 months from the closing date of the IPO. EIH, as the sole cornerstone investor; Low Kwong, the controlling shareholder of Bayan; and the selling shareholders have also signed a strategic co-operation agreement regarding the corporate governance of the company, share transfers, covenants and agreements.
In addition to the acquisition of the 10% shareholding, the Enel Group has also executed through Enel Trade, a coal supply agreement with Bayan which provides for the supply of a specified amount of coal until December 2019. Enel was one of Bayan’s top five customers by sales revenues in 2007.
