OZ Minerals Limited announced that it has extended the offer period for its recommended off-market takeover offer (through its wholly owned subsidiary OZ Minerals Brazil (Holdings) Pty Ltd) for all the ordinary shares in Avanco Resources Limited.
The Offer is now scheduled to close at 7.00pm (Sydney time) on 1 June 2018
In relation to this extension, a formal notice of variation has been lodged with ASIC and served on Avanco, and has also been sent to Avanco shareholders. A copy of the notice, along with a copy of a letter sent to shareholders accompanying the notice, is attached to this announcement.
The Offer values Avanco at $0.17 per Avanco share, which is at a level higher than the Avanco share price at any time in the last five years, and which represents a significant 121% premium to Avanco’s share price of $0.077 per share before the Offer was announced1 . It also allows Avanco shareholders to hold shares in a financially stronger company with a diversified asset portfolio and a history of paying dividends.
OZ Minerals notes that the offer price is final, in the absence of a competing proposal. This means that OZ Minerals cannot, by law, increase its offer price unless Avanco receives a competing proposal. Furthermore as at the date of this announcement, the OZ Minerals Offer is the only offer available for all your Avanco shares.
The directors of Avanco unanimously recommend that Avanco shareholders accept the Offer in the absence of a superior proposal. Importantly, and as announced by Avanco on 2 May 2018, Avanco’s directors and certain members of Avanco management have already accepted the Offer for their collective holdings, representing 0.57% of all Avanco shares2 . Avanco also confirmed that it has not received any competing proposal.
As at the date of this announcement, OZ Minerals has a relevant interest of 22.31%2 in Avanco.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.