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.