OZ Minerals Hasn’t Had Offer ‘Superior’ to Minmetals

By Jesse Riseborough

June 4 (Bloomberg) -- OZ Minerals Ltd., the Australian mining company trying to refinance A$1.1 billion ($882 million) debt, said it hasn’t had a better rescue offer than China Minmetals Group’s $1.2 billion bid to buy most of its assets.

“OZ Minerals has not received a recapitalization proposal which it considers to be a superior alternative to the China Minmetals transaction,” the Melbourne-based company said today in a statement to the Australian stock exchange.

The company may receive a $1.2 billion recapitalization proposal from Royal Bank of Canada and RFC Group today, the Australian Financial Review said today without citing anyone. The plan involves 20 Australian and international investors providing $1 billion from convertible bonds and new equity, the newspaper said. An international bank may also provide a $200 million working capital facility, the report said.

Minmetals, China’s biggest metals trader, is seeking to complete the purchase of OZ Minerals assets next month, giving it control of the world’s second-biggest zinc mine and supplies of copper, gold and nickel. OZ Minerals agreed to the sale in April after the Australian government rejected a full takeover bid by Minmetals.

OZ Minerals fell 3.9 percent to 86.5 cents at 11:37 a.m. Sydney time. OZ Minerals shareholders are due to vote on the Minmetals proposal on June 11 and the company is seeking to complete the sale by June 18.

To contact the reporter on this story: Jesse Riseborough in Melbourne at jriseborough@bloomberg.net