Oz rejects Minmetals competition

Oz Minerals has rejected two recapitalisation proposals to refinance its debt.

Oz Minerals has rejected two recapitalisation proposals and reaffirmed its commitment to an agreed $1.2 billion takeover by China’s Minmetals.

Oz Chairman Barry Cusack has shunned both proposals as ‘not superior’ to the Minmetals takeover, which he says provides the best option for all the company’s refinancing needs.

“We have been scrupulous in our assessment of the alternatives that have been presented to us, and the Minmetals proposal remains the best solution,” he said.

OZ Minerals, which needs to raise money to repay A$1.1 billion in debt, has not reported who made the alternative proposals; however, it has been revealed one of the proposals involved up to US$780million in convertible bonds and an equity placement of US$280 million.

A second proposal is said to have addressed recapitalisation, but was rejected due to high costs.

Cusack is urging shareholders to vote in favour of the Minmetals deal, which has now received all regulatory approvals.

“We believe [the Minmetals transaction] will resolve OZ Minerals’ refinancing issues and offer value to our shareholders,” he said.

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