The offer price of 82.5 Australian cents per share represents a premium of 50% to the last traded price of OZ Minerals on November 27, 2008.

OZ Minerals was formed in 2008 by the merger of Australian mining companies Oxiana Limited and Zinifex Limited. OZ Minerals is Australia’s third largest diversified mining company and is the world’s second largest producer of zinc.

OZ Minerals said its Board of Directors has unanimously recommended the offer, subject to the absence of a better counter offer and an independent expert confirming the deal is in the best interest of OZ Minerals shareholders.

Minmetals also intends to allow early redemption of, or otherwise acquire, OZ Minerals’ 5.25% outstanding 2012 convertible bonds.

The proposed deal will be subject to approval by Australia’s Foreign Investment Review Board, the satisfactory completion of confirmatory due diligence by Minmetals by February 23, and OZ Minerals’ banking syndicate agreeing to extend the term of their debt arrangements, among other things.

If the take over pushes through, OZ Minerals will continue to be headquartered in Australia with its staff retained. OZ Minerals added that Minmetals confirmed its intention to continue to operate the existing operations, with its employees.

Source : Konaxis