China Minmetals purchase OZ Minerals with $1.21bln

April 17 MetalBiz--Debt-laden Australian miner OZ Minerals announced on April 4 that the company had signed a $1.21bln purchasing deal with China Minmetals which would pay A$500mln ($366mln ) in cash.

The revised bid is lower than Minmetals' original offer of $1.7bln, and excludes the flagship Prominent Hill mine and other "sensitive assets".
 
"Once this transaction implemented, which will provide a complete solution to our financing issues and see shareholders retain their OZ Minerals shares and therefore exposure to the Prominent Hill operation and its long-term growth profile," said Andrew Michelmore, OZ's chief executive officer.

OZ said it expected the deal is yet to be approved by Chinese regulators and Australia's foreign investments review board as well as its shareholders and could go through in late June.

To ensure a smooth acquisition, OZ pledged not to voluntarily make contacts with other third parties that also intend to bid for it, and in turn Minmetals agreed to pay OZ $12mln in compensation if the deal eventually collapses, China Securities Journal reported on April 15.

Australian authorities turned down Minmetals' project on March 27, according national security news. The current agreement was based on a revised proposal issued by Minmetals on April 1.