Consortium extends OZ Minerals deadline

The consortium seeking to trump Chinese-owned Minmetals' bid for assets of miner OZ
Minerals Ltd has extended its deadline for acceptance, after the OZ Minerals board
rejected its offer over the weekend.
The bidding consortium, led by RFC Corporate Finance and RBC Capital Markets, now
say their offer will remain on the table until 1700 (AEST) on Thursday, June 11, the
day OZ Minerals shareholders meet to vote on the Minmetals bid.
This would allow OZ Minerals to take up their alternative, which emerged late on
Friday, should shareholders vote against the Minmetals bid at the miner's annual
general meeting at 1030 (AEST).
"Should shareholders of OZ Minerals reject the Minmetals offer, the OZ Minerals
board will still have the option of pursuing our recapitalisation proposal," RFC
Managing Director Rob Adamson said on Monday.
The RFC/RBC offer involves a recapitalisation of OZ Minerals, with the miner raising
$US1 billion ($A1.25 billion) in fresh equity and convertible bonds and another
$US220 million ($A249.44 million) under a working capital facility.
The refinancing proposal would allow OZ Minerals to retain all its current assets
and repay bankers the $1 billion it owes them by June 30, its backers said.
Mr Adamson said the OZ Minerals board had notified the consortium that it would not
recommend the recapitalisation proposal over the Minmetals bid.
Under the bid by China Minmetals Non-ferrous Metals Company Ltd (Minmetals), most of
OZ Minerals' assets would be bought by Minmetals for about $US1.2 billion ($A1.5
billion).
OZ Minerals would be left with the Prominent Hill mine in South Australia as its
only significant asset and between $750 million and $800 million in cash.
The deal excludes OZ Minerals' Martabe gold mine in Indonesia, which is being sold
separately for $US211 million ($A263.16 million).
The OZ Minerals board has recommended the Minmetals bid and has already announced a
new executive structure to take account of the soon-to-be-changed company.
OZ Minerals on Friday again recommended the Minmetals bid as the "best available
option for the company".
Mr Adamson maintained on Monday that his consortium's proposal "provides the OZ
Minerals board with the value, certainty and timing the company needs".
"We also welcome comments by Commonwealth Bank Chief Executive Ralph Norris to
Business Spectator that the bank will continue to support OZ Minerals if the company
rejects the Minmetals offer in favour of a better proposal.
"OZ Minerals Chief Executive Officer Andrew Michelmore last year said the merger of
Oxiana and Zinifex to create OZ Minerals made 'strong strategic sense' and that the
merged entity would be 'well positioned to benefit from the strength of demand for
commodities we see stretching out for many years'.
"RFC and RBC Capital Markets believe it makes no sense to put two great and
complementary companies together just to sell off their key assets at a price less
than their worth a year later - especially when commodities prices are once again
rising," Mr Adamson said.
"The Independent Expert, Grant Samuel, found the assets were worth up to $US1.6
billion - $US400 million more than the Minmetals offer - at the bottom of the
commodities market.
"Our proposal will allow OZ Minerals to realise its potential.
"Several of OZ Minerals' largest shareholders are supportive of the recapitalisation
proposal."
OZ Minerals shareholders must lodge proxy voting certificates by 1030 (AEST) on
Tuesday, June 9, if they are to be taken into account in the shareholder vote at the
company's annual general meeting on Thursday.
OZ Minerals shares closed up 1.5 cents at 88.5 cents on Friday.