The state-owned Chinese company Minmetals has confirmed its due diligence in Oz Minerals, the first of two conditions to be satisfied before its $2.6 billion takeover can continue. The second condition - an agreement with Oz's banks extending a $1.1 billion debt facility to 31 March - needs to be completed by the end of this week, although the inclusion of European banks is expected to delay confirmation of the extension until Monday.
Approval from the banks is expected to be a formality as Minmetals intends paying off all OZ's debt.
OZ and Minmetals also need to secure approval from both the Australian and Chinese governments and the all-clear from the Australian Department of Defence because the group's Prominent Hill project in South Australia is on the Woomera rocket range.
As part of its refinancing plans, OZ has said it is advanced in separate deals to sell its Martabe gold project in Indonesia and the Golden Grove base metals mine in Western Australia.
Rumours that a deal had been struck last week to sell Martabe to a syndicate led by Owen Hegarty have yet to be confirmed.
Source: Melbourne Age
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