BHP said it submitted a non-binding, indicative proposal to the board of Oz Minerals on Friday to acquire 100% of its shares through a plan of arrangement.
BHP chief executive Mike Henry said BHP was disappointed with the rejection of the offer, which represented a 32.1% premium to Friday’s closing price and a 41.4% premium to Oz Minerals’ 30-day weighted average of $17.67 per share.
“We are disappointed that the Oz Minerals Board of Directors has indicated that they are unwilling to accept our compelling offer or provide us with access to due diligence regarding our proposal,” Henry said.
“Our proposal represents compelling value and certainty for OZ Minerals shareholders in the face of a deteriorating external environment and increasing operational and funding challenges associated with Oz Minerals’ growth.”
Oz Minerals, which operates two copper and gold mines in South Australia, reported a drop in copper production last month and cut its production target due to coronavirus-related labor shortages, supply chain disruptions and maintenance issues.
Oz Minerals’ South Australian mines sit on either side of BHP’s huge Olympic Dam copper hub, which BHP says could generate significant synergies. Oz Minerals also has a nickel development in Western Australia, where it is nearing a $1 billion investment decision.
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