Anhui Leimingkehua said it and a subsidiary plan to buy Huaikuang Co Ltd, a coal miner based in eastern China’s Anhui province, for 20.3 billion yuan ($3.08 billion) in cash and newly-issued shares. [nH9N1NS01G]

The company aims to raise up to 700 million yuan in a private placement of shares to help fund the acquisition, it said in a statement.

The coal miner, which is also the largest producer of coke in eastern China, reported an unaudited revenue between January and July this year of 31.96 billion yuan, according to Leimingkehua’s filing to the Shanghai Stock Exchange.

The miner had coal reserves of about 3.7 billion tonnes at the end of 2016.

“The deal is part of the government’s push to reform the state-owned sector and boost the securitization of state-owned assets,” the company said.