Categories: Blackpeak Capital Deals | PR

PRESS RELEASE: Blackpeak advises – OZ Minerals announces takeover offer for Avanco Resources

  • OZ Minerals announces an off-market takeover offer to acquire Avanco Resources, subject to 50.1% minimum acceptance condition
  • 50/50 cash/scrip consideration, comprising A$0.085 cash and 0.009 OZ Mineral shares per Avanco share, maintains OZ Minerals’ strong balance sheet for further growth

  • Offer consideration values Avanco at A$0.17p.s.1 or a total equity value of A$418 million2
  • The Offer Consideration is final and will not be increased3
  • Avanco’s Brand unanimously recommends the Offer
  • Avanco shareholders representing 30.62% of Avanco shares have indicated they will accept the Offer in the absence of a superior proposal
    • pre-bid acceptance deed entered into with Appian4, Avanco’s largest shareholder, representing 18.45% of Avanco shares,
    • statement of intention received from funds and accounts under management by BlackRock Investment Management (UK) Limited
      (“BlackRock”) (representing 11.6% of Avanco shares) and Avanco’s directors and management (representing 0.57% of Avanco shares)
  • Offers represents value for both OZ Minerals and Avanco shareholders
    • OZ Minerals value and earnings accretive opportunity through multiple new growth options
    • Avanco: fair value for illiquid stock, whilst retaining exposure to Brazil
  • Major strategic foothold in two world-class mineral provinces – Brazil’s Carajas copper region and the Gurupi greenstone belt
  • Operating copper mine, two study projects, range of advanced exploration projects to benefit from OZ Minerals’ capital and technical strength
  • Pathway to optimise asset portfolio
  • Strong and proven in-country management team; culturally aligned; bolt-on simplified transition

1 Based on OZ Minerals’ 1-month VWAP lof A$9.45p.s. up to and including 26 March 2018.
2 Based on 2,456,906,443 Avanco shares at at 26 March 2018.
3 In the absence of competing proposal
4 Appian Natural Resources Fund LP and Appian Natural Resourtves (UST) Fund LP.