Friday June 5, 06:34 AM
Late OZ bid could scupper Chinese deal: reports
SYDNEY (AFP) - Australian miner OZ Minerals is considering a last-minute recapitalisation proposal which could scupper its planned assets sale to China's Minmetals, reports said on Friday.
Royal Bank of Canada and RFC Group are leading a 1.2 billion US dollar plan, backed by institutional investors, that would trump the Minmetals deal, The Australian and The Sydney Morning Herald said, citing unnamed sources.
OZ's board was due to receive the offer on Friday, the reports said, adding that it included one billion US dollars in bonds and equity and 200 million US dollars in working capital.
The reports come as Rio Tinto (LSE: RIO.L - news) , the world's third largest miner, shelved a planned tie-up with Chinese firm Chinalco in favour of a rights issue and a joint venture with former rival BHP Billiton (LSE: BLT.L - news) .
Canberra has already approved Minmetals' adjusted 850 million US dollar offer, which excludes OZ's flagship mine near a testing range for military rockets in South Australia.
The debt-laden OZ last month sold its Martabe project in Indonesia to a Hong Kong-listed investment company for 211 million US dollars, easing its refinancing issues.
Chinese bids for Australian mining operations have sparked fierce debate here with opponents questioning moves to let Beijing, a key commodities customer, also own such resources.
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