Why is Oz Minerals (OZL) rallying today?
This morning, OZL rejected an unsolicited, conditional and non-binding indicative takeover proposal of $25.00 per share in cash from BHP. The board unanimously determined that the indicative proposal significantly undervalues OZ Minerals and, as such, is not in the best interests of shareholders. The price represents a 32% premium to the last close for OZL but only a 13% premium to the 6-month volume weighted average price. Based on a 30% premium to NPV for OZL, which is a typical sort of resource premium for a change of control transaction, OZL is worth ~$30 per share.
MM is long & bullish OZL in our Flagship Growth Portfolio and will hold for now
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