Yitai Coal to divest majority stake in Huzhun Railway for 6.28 bn yuan

Inner Mongolia Yitai Coal Co. (Yitai Coal) announced it will transfer a 51% equity interest in its controlling subsidiary, Inner Mongolia Yitai Huzhun Railway Co. (Huzhun Railway), to China Railway Hohhot Group Co. The equity transfer agreement was signed on September 29, 2025. Following the transaction, Yitai Coal will retain a 21.6569% stake in Huzhun Railway.

The preliminary transfer price for the 51% equity is approximately 6.28 bn yuan. This valuation is based on an asset-based assessment from a valuation report, which estimated Huzhun Railway's total equity value at 12.314 bn yuan as of September 30, 2024. The deal aims to optimize Yitai Coal's asset allocation and improve its capital structure.

Payment for the equity will occur in two installments, with 50% paid within 30 working days after regulatory approval and the remaining 50% within 30 working days after industrial and commercial registration is completed.