The share price of the Hunter Valley thermal coal producer is consequently closed down 12% on Friday to $92.00 trading at $97.50 compared to its close of $105 the day previous.

Sojitz sold its 4.93 million shares in two transactions at $76 a share in a five-minute period from 8:32am Friday morning.

Given the lack of liquidity in Coal & Allied shares and the volumes, Sojitz elected to sell at the considerable discount.

After the action, Coal & Allied released a notifying letter from Sojitz which did not state a reason but said it had decided to sell down its entire stake and cease to be a substantial holder.

For the first quarter of the current Japanese financial year, ending June 30, Sojitz posted a 1.56 billion yen net income loss ($US16.66 million), compared to net income of 16.3 billion yen for the corresponding period last year.

Australia-listed Coal & Allied is 76% owned by Rio Tinto.