OZ Minerals sells Sandfire shares

Sandfire Resources NL (ASX: SFR) entered a trading halt on Friday afternoon after it was announced that the company’s majority shareholder OZ Minerals would offload its shares.

OZ Minerals said on Friday it had agreed to the sale of the 19.1 per cent stake in Sandfire at $4.20 per share, a 1.75 per cent discount on the market price at the time, with the value of the sale estimated at $125 million.

The stake in Sandfire was bought for $100 million in 2010, according to the West Australian.

OZ Minerals also elected to enter into a simultaneous trading halt with Sandfire, which closed at $4.28 just after 2pm on Friday.

Shares in OZ Minerals have inclined sharply since March 11, rising from $3.525 to $3.79 on Friday.

Sandfire Resources managing director Karl Simich said he was delighted to welcome the new investors to the company.

“Sandfire looks forward to further success, built on the strong foundations of our profitable and cash-generating Degrussa operation, our highly prospective tenement holding in the Doolgunna-Bryah Basin region and our growing international business development portfolio,” Simich said.

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