OZ Minerals to recommend BHP’s revised buyout offer

The OZL Board has confirmed to BHP that it intends to unanimously recommend the revised proposal to OZL shareholders as being in the best interests of OZL shareholders in the absence of a superior proposal, subject to the parties entering into a binding scheme implementation agreement (SIA). Following completion of BHP’s confirmatory due diligence and an independent expert concluding that the revised proposal is in the best interests of OZL shareholders.

The revised proposal price of AUS$28.25 per share corresponds to an enterprise value of AUS$9.6 billion for OZL and represents a significant and attractive premium of:

• 49.3% to OZL’s closing price of AUS$18.92 per share on 5 August 2022, being the last trading day prior to the initial proposal by BHP. • 59.8% to OZL’s 30-day VWAP of AUS$17.67 per share up to and including 5 August.
• A 13.0% increase to BHP’s original offer price of AUS$25.00 per share.

OZL may pay a franked dividend to OZL shareholders prior to the transaction being implemented. The cash consideration price under the revised proposal will be reduced by the cash component of any dividends or return of capital paid by OZL before the date of the implementation of the revised proposal.

BHP has entered into a confidentiality and exclusivity deed with OZL in relation to the revised proposal. Under the confidentiality and exclusivity deed, OZL has granted BHP 4 weeks to undertake exclusive confirmatory due diligence and negotiate a binding SIA reflecting the key terms of the revised proposal.

BHP Chair, Ken MacKenzie said:

“BHP’s proposal would provide value to BHP shareholders by increasing exposure to future facing commodities, attractive synergies and adding to our pipeline of growth options.”

BHP CEO Mike Henry said:

“BHP’s proposal represents a highly compelling offer for OZL shareholders, providing certainty at a time of macroeconomic uncertainty and market volatility, and increasing risks for the industry.

“The combination of BHP and OZL’s 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.”

Read the article online at: https://www.globalminingreview.com/mining/21112022/oz-minerals-to-recommend-bhps-revised-buyout-offer/