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Minmetals to pay US$1.7b for debt-laden OZ Minerals
By Fu Chenghao |
February 17, 2009, Tuesday
|
Print Edition
Print Edition
China Minmetals Corp, a state trading group, has agreed to buy Australia's OZ Minerals Ltd for A$2.6 billion (US$1.7 billion), gaining access to resources such as copper, zinc and gold mines globally.
OZ Minerals, which has been rushing to sell mining assets and repay debt, said the outstanding debt would be repaid by Minmetals on completion of the transaction, which will resolve its "present financial issues."
Minmetals' all-cash offer, announced yesterday, came less than a week after Chinalco, China's leading nonferrous metals producer and top aluminum maker, agreed to invest US$19.5 billion in debt-laden Anglo-Australian miner Rio Tinto, taking advantage of cheaper assets at bargain prices as global commodity markets slumped.
Beijing-based Minmetals agreed to pay 82.5 cents a share, a 50-percent premium to OZ Minerals' last traded price, according to a joint release. The deal is recommended by OZ Minerals' board of directors.
OZ Minerals had its shares suspended from trading since December as it sought extensions to refinance the debt. Shares will resume trading today in Australia.
OZ Minerals is Australia's third-largest diversified mining company and is the world's second-biggest zinc producer and a substantial producer of copper, lead, gold and silver. It operates in Australia, Asia, and the Americas, according to its Website.
Minmetals Chairman Zhou Zhongshu said OZ Minerals has a number of assets that complement the nonferrous asset portfolio of the Chinese firm, which has significant operations on five continents, including Australia, Europe, North America and South America.
"Minmetals intends to continue to operate OZ Minerals' portfolio of assets, and its acquisition will provide the opportunity to support the development of OZ Minerals' assets and projects," Zhou said.
The deal is subject to regulatory approvals in Australia and China, and OZ Minerals' current creditor banks as well as the completion of due diligence by Minmetals.
OZ Minerals, which has been rushing to sell mining assets and repay debt, said the outstanding debt would be repaid by Minmetals on completion of the transaction, which will resolve its "present financial issues."
Minmetals' all-cash offer, announced yesterday, came less than a week after Chinalco, China's leading nonferrous metals producer and top aluminum maker, agreed to invest US$19.5 billion in debt-laden Anglo-Australian miner Rio Tinto, taking advantage of cheaper assets at bargain prices as global commodity markets slumped.
Beijing-based Minmetals agreed to pay 82.5 cents a share, a 50-percent premium to OZ Minerals' last traded price, according to a joint release. The deal is recommended by OZ Minerals' board of directors.
OZ Minerals had its shares suspended from trading since December as it sought extensions to refinance the debt. Shares will resume trading today in Australia.
OZ Minerals is Australia's third-largest diversified mining company and is the world's second-biggest zinc producer and a substantial producer of copper, lead, gold and silver. It operates in Australia, Asia, and the Americas, according to its Website.
Minmetals Chairman Zhou Zhongshu said OZ Minerals has a number of assets that complement the nonferrous asset portfolio of the Chinese firm, which has significant operations on five continents, including Australia, Europe, North America and South America.
"Minmetals intends to continue to operate OZ Minerals' portfolio of assets, and its acquisition will provide the opportunity to support the development of OZ Minerals' assets and projects," Zhou said.
The deal is subject to regulatory approvals in Australia and China, and OZ Minerals' current creditor banks as well as the completion of due diligence by Minmetals.
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