China Minmetals bid for Oz Minerals

SHANGHAI – Chinese metals and minerals trader and producer Minmetals Non-ferrous Metals Co. has offered to buy debt-troubled Australian miner Oz Minerals for US$1,7 billion, the companies said yesterday.

Coming just days after Aluminum Corp. of China said it will invest US$19,5 billion in Rio Tinto Group, easing the Anglo-Australian miner’s heavy debt burden, the offer underscores China’s determination to clinch access to offshore mining resources.Despite its own economic troubles, Beijing is finding the global downturn an apt opportunity for its cash-rich state companies to snap up foreign energy and resource companies at bargain prices.Oz Minerals’ board recommended that shareholders accept the cash offer, which values its shares at Australian 82.5 cents (53.5 US cents) apiece, a 50 per cent premium to their last traded price, according to a statement to the Australian Stock Exchange.’The board has determined that Minmetals’ cash proposal is in the best interests of Oz Minerals’ shareholders and believes this is the best outcome for shareholders compared with any of the other options available to us,’ its chairman, Barry Cusack, said in a statement.Oz Minerals was formed through the merger last year of Oxiana and Zinifex. Its shares traded at 55 Australian cents (36 US cents) when they were suspended in November.The copper and gold producer said it has about US$778,6 million in debt due to be refinanced on February 27. On completion of the takeover, the debt would be repaid by Minmetals, resolving Oz Minerals’ ‘present financial issues,’ it said.The deal is subject to regulatory approvals by both the Chinese and Australian governments and completion of due diligence by Minmetals. -Nampa-AP