The Deal is a Joke

Just on the news, another RIO style transaction. Another MGX, and PPX, PEM, MIS, GBG and who's next?.  

The deal is a joke..to say the least.

Luckily, I still have some time to sign the IMF lawsuit re: OZL.

OZ Minerals agrees to Chinese takeover

February 16, 2009 - 4:25PM

Debt-laden copper and gold producer OZ Minerals has recommended a $2.6 billion takeover offer from China Minmetals Non-ferrous Metals Company, in what would be the second major investment by a Chinese company in Australia within a week.

The Chinese trading company is offering 82.5 cents for each share in OZ Minerals, which is seeking to refinance $1 billion of debt by February 27, with the proposed acquisition to be completed via a scheme of arrangement.

OZ Minerals said the offer is unanimously recommended by its board in the absence of a superior one. 

"The board has determined that Minmetals' cash proposal is in the best interests of OZ Minerals' shareholders and believes this is the best outcome for shareholders compared with any of the other options available to us,'' chairman Barry Cusack said in a statement.

Shares in OZ Minerals - which was formed through the merger of Oxiana and Zinifex last year - last traded at 55 cents before the company entered a voluntary suspension in December.

OZ Minerals has been pursuing asset sales and other cost-reduction measures including, job and production cuts and placing its Avebury nickel mine in Tasmania on care and maintenance.

The company said it would continue to pursue the sale of the Martabe gold and silver project in Indonesia and the Golden Grove polymetallic mine in Western Australia.

OZ Minerals said its outstanding debt facilities would be repaid by Minmetals upon completion of the transaction, which would solve its "present financial issues''.

"Minmetals has confirmed that it intends to continue to operate current OZ Minerals operations, which, in turn, will benefit employees and relevant local communities and also provide certainty to businesses beyond those operated by OZ Minerals,'' managing director Andrew Michelmore said in a statement on Monday.

The transaction is subject to regulatory approvals, completion of due diligence by Minmetals, OZ Minerals banking syndicate agreeing to extend the term of their debt arrangements and shareholder approval.

OZ Minerals said the company would continue to be domiciled in Australia with its staff retained.

"Minmetals will provide a robust platform for OZ Minerals to realise its growth potential when market conditions permit,'' Minmetals chairman Zhou Zhongshu said in a statement.

The proposal follows Rio Tinto's $US19.5 million ($30 million) deal with major shareholder and China's state-backed company Chinalco. 

BusinessDay, with AAP