OZ Minerals has rejected a non-binding indicative proposal submitted by BHP on 5 August to acquire 100 per cent of the issued share capital in OZ Minerals for A$25.00 per share in cash.
The proposal is subject to conditions including completion of confirmatory due diligence to the satisfaction of BHP, entry into a scheme implementation agreement, various financial assumptions, and a unanimous recommendation of the Board of OZ Minerals.
“Our proposal represents compelling value and certainty for OZ Minerals shareholders in the face of a deteriorating external environment and increased OZL operational and growth-related funding challenges,” BHP CEO Mike Henry said.
Following an assessment, OZ Minerals’ Board has unanimously determined that BHP’s indicative proposal undervalues OZ Minerals and that it’s not in the best interest of the company’s shareholders.
“We have a unique set of copper and nickel assets, all with strong long-term growth potential in quality locations. We are mining minerals that are in strong demand particularly for the global electrification and decarbonisation thematic, and we have a long-life Resource and Reserve base. We do not consider the proposal from BHP sufficiently recognises these attributes,” OZ Minerals Managing Director and Chief Executive Officer Andrew Cole said.
OZ Minerals also considered that BHP’s indicative proposal is high opportunistic and has come at a time when the LME copper price and OZ Minerals share price have fallen from their recent peaks in March and January. According to the Board, OZ Minerals has also steadily traded above the proposed offer price for the equivalent of over five of the last 12 months.
BHP CEO Henry has expressed disappointment over the decision made by the Board of OZ Minerals, noting the company’s unwillingness to entertain BHP’s offer or provide them with access to due diligence concerning their proposal.
