OZ Min, BHP look ready for takeover

THE board of OZ Minerals intends to support a $9.6bn takeover offer from BHP, after the suitor sweetened its bid by more than $1bn.

The all-cash offer of $28.25 a share follows months of talks, after BHP first approached the copper miner in August. It represents a 49.3 per cent premium to OZ Minerals’ closing price of $18.92 a share on August 5, before the initial offer was announced.

OZ Minerals told the sharemarket the new offer delivered “full and fair value” in light of attractive long-term market fundamentals for copper and nickel, OZ Mineral’s growth pipeline and its synergy value available to BHP.

BHP chief executive Mike Henry said the proposal represents a “highly compelling” offer for OZ Minerals shareholders, providing certainty at a time of macroeconomic uncertainty and market volatility, and increasing risks for the industry.

“The combination of BHP and OZ Minerals’ assets, skills and technical expertise provides a unique opportunity not available under separate ownership, with complementary resources including the Oak Dam exploration prospect and existing facilities within close proximity, backed by BHP’S strong balance sheet, capital discipline and commitment to sustainable development,” he said.

The two companies are understood to have spent Wednesday and Thursday locked in talks over the terms of the new BHP bid for OZ.

The deal is subject to the parties entering into a binding scheme implementation agreement following completion of BHP’S due diligence and an independent expert’s assessment of the bid.

“It is the board’s view that progressing the revised proposal ... is in the best interests of OZ Minerals’ shareholders and other stakeholders,” OZ Minerals chairwoman Rebecca Mcgrath said.