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Australia OZ Minerals gets alternative proposal-paper
May 27, 2009 / 10:27 PM / 9 years ago

Australia OZ Minerals gets alternative proposal-paper

SYDNEY, May 28 (Reuters) - Investment bank Morgan Stanley (MS.N) has presented a recapitalisation proposal to Australian miner OZ Minerals Ltd (OZL.AX), giving it an alternative to its planned takeover by China’s Minmetals, the Australian Financial Review said on Thursday.

Citing no sources, the business daily said Morgan Stanley had made the proposal to raise capital to pay off OZ Minerals’ debt through a raising of $1 billion at 48 cents a share.

The deal may also include a debt facility and a cornerstone investor, the paper said, though this was uncertain.

The paper said OZ’s general manager of business development, Bruce Loveday, declined to comment on specific proposals, but said the board had an obligation to look at any proposal that could be superior for shareholders.

However the company’s outgoing chief executive, Andrew Michelmore, told Reuters on Wednesday that no other proposals would be put to shareholders at a meeting to vote on the Minmetals deal on June 11.

“There’s speculation and rumours but there is only one clear offer on the table. It goes to the vote on June 11,” said Michelmore, speaking on the sidelines on a mining conference.

“It provides a total solution to our refinancing and in the absence of a superior offer the board will be unanimously recommends it as the best option.”

OZ Minerals has agreed to sell most of its assets to China’s Minmetals for $1.21 billion in a revised deal after the Australian government blocked a previous offer from Minmetals on national security grounds. (Reporting by Jonathan Standing)

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