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  • OZ Minerals (OZL) rejects an $8.37 billion takeover offer from BHP, claiming the offer “significantly undervalues” its copper and nickel assets
  • BHP has offered to buy all shares in Oz Minerals for $25 per share in cash — a 32.1 per cent premium to OZL’s last closing price
  • OZL’s CEO and Managing Director, Andrew Cole, says the company has a unique set of copper and nickel assets with strong long-term growth potential in quality locations
  • BHP CEO Mike Henry, however, says the offer represents “compelling value” and certainty for OZ Minerals shareholders, and the company is disappointed with the rejection
  • OZL shares last traded at $18.92 and BHP shares at $38.81 on August 5

OZ Minerals (OZL) has rejected an $8.37 billion takeover offer from BHP, claiming the offer “significantly undervalues” its copper and nickel assets.

BHP has offered to buy all shares in Oz Minerals for $25 per share in cash via a scheme of arrangement. This offer is a 32.1 per cent premium to OZL’s closing price on August 5, though lower than its share price at the start of the year.

OZL’s CEO and Managing Director, Andrew Cole, said the company had a unique set of copper and nickel assets 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,” he said.

“We do not consider the proposal from BHP sufficiently recognises these attributes.”

The OZL board said it noted the proposal was highly opportunistic and had come at a time when the LME copper price and OZ Minerals share price had fallen from their recent peaks earlier this year.

Nevertheless, BHP CEO Mike Henry said the company’s proposal represented “compelling value” and certainty for OZ Minerals shareholders in the face of a “deteriorating external environment”.

“We are disappointed that the board of OZL has indicated that it is not willing to entertain our compelling offer or provide us with access to due diligence in relation to our proposal,” Mr Henry said.

OZL shares last traded at $18.92 on August 5, and BHP shares were at $38.81 at the same time.

OZL by the numbers
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