OZ Minerals this week reached acceptances in its bid for Brazilian copper-gold miner Avanco totalling 73.9 per cent of company shares.
The South Australian-based company requires only 50.1 per cent of investor shares in order for the takeover of Avanco to proceed.
Of the 73.9 per cent figure, OZ has received 63.7 per cent of shares as acceptances and 10.2 per cent in shares from investor Blackrock via an institutional acceptance facility, which are to be processed as acceptances.
Acceptances related to the $418 million takeover offer have now been received from all of Avanco’s major institutional investors, including (notably) Glencore, now on board after having maintained relative quiet since the offer’s inception in March.
Glencore, while not Avanco’s biggest investor (that would be Appian with 18.45 per cent), is one of its most high profile.
Other major investors to agree to OZ’s deal include the previously mentioned BlackRock and Greenstone Resources, a London-based investment firm that had previously expressed concerns that OZ’s offer (8.5 cents in cash and 0.009 OZ shares for every Avanco share to the value of $418 million) undervalued Avanco.
The combination of the cash and share offers places the value at closer to 18.1 cents per share, a 135 per cent premium on Avanco’s 7.7 cent share price prior to the transaction.
The offer, which was declared unconditional on June 7, has been extended until July 6. Avanco shareholders who accept by June 14 will be paid by June 21.