OZ Minerals has reached a $32.5 million settlement over the class action proceedings against it.
“The settlement was agreed to avoid the litigation risk and significant expense of a lengthy trial and to enable OZ Minerals to focus on growing shareholder value,” the miner said.
The action was initiated in 2009 on behalf of IMF clients who purchased OZ shares between 21 August 2008 and the end of November 2008.
The company alleged OZ engaged in misleading and deceptive conduct by not disclosing debt refinancing details, when it was formed by a merger between Oxiana and Zinifex in March 2008.
IMF alleged that the company failed to properly disclose the refinancing agreement when it entered it three days before the merger was announced.
After years of back and forth OZ Minerals has finally reached an in principle settlement with the applicant Mr. Mitic.
The agreed settlement is $32.5 million, of which OZ Minerals’ net contribution is $24 million.
This payment will be included in OZ Minerals’ 2016 financial results, as settlement is expected to occur in the second half of the financial year.