Minmetals
China Minmetals Corporation, founded in 1950, is a large-sized group dealing worldwide in development, production, trading and operation for metals and minerals. It is also engaged in finance, real estate and logistics.
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Minmetals revises Oz Minerals bid
China Minmetals Group, China’s biggest metals trader, is revising its offer for Oz Minerals Ltd. The new bid should exclude the mine that caused Australia to reject its bid over concerns about its proximity to a military area.
Some analysts however have said the deal may now be finished, with Oz Minerals liable to fall into receivership. “We would be surprised if Minmetals are still interested in doing business with Oz Minerals as a result of this decision,” Credit Suisse said in a report today, although the two companies are understood to still be in talks.
Minmetals now aims to buy all Oz Minerals assets excluding the military area Prominent Hill. Talks on changing the terms of the A$2.6bn (US$1.8bn) takeover bid are continuing.
The sale of all its assets except Prominent Hill should leave Oz Minerals, which seeks to extend a March 31 deadline on A$1.2bn of debt, with enough cash to repay its loans. Prominent Hill itself may be worth about A$1bn, or 32 cents a share. Oz Minerals stopped trading on the Australian Stock Exchange on March 27, and last traded at 55.5 cents. Minmetals is offering 82.5 cents a share for the company.
“Discussions continued over the weekend with both companies with a view to finding a proposal that satisfied the treasurer’s requirements”, a spokesman for Oz said. Talks are continuing, and have proven constructive, CEO Andrew Michelmore said on March 27.
Australia is studying a number of Chinese investment proposals, including a proposed US$19.5bn investment in Rio Tinto Group, amid a backlash from politicians and shareholders.
Other Minmetals news
- Minmetals lifts Oz Minerals bid by 15pct to seal takeover
2009-06-12 - China’s Minmetals makes $1.7bn bid for Oz Minerals
2009-02-17
