Oz Minerals rejects AUD8.3bn takeover offer from BHP

BHP said on Monday that it made an AUD8.3bn takeover bid for Oz Minerals that was rejected.

Under the terms of the offer, BHP would have paid AUD25.00 per share for each Oz share. This is a premium of 32.1% to the closing share price on Friday.

“BHP's proposal represents a significant premium to the market value of OZL at the time the proposal was submitted, at a price that was materially above the average broker price targets," the company said. "The cash offer would deliver immediate value to OZL shareholders and de-risk any value which may (or may not) eventually be reflected in OZL's share price."

Chief executive officer Mike Henry said the proposal represents "compelling value and certainty for Oz Minerals shareholders in the face of a deteriorating external environment and increased OZL operational and growth-related funding challenges".

"We are disappointed that the board of OZL has indicated that it is not willing to entertain our compelling offer or provide us with access to due diligence in relation to our proposal," he added.