BG Lifts Pure Offer, Oz Minerals Buyout

123jump.com Staff
17 Feb, 2009
New York City

Stocks in Australia fell on the worries that the global recession is likely to deepen after G-7 meeting of ministers failed to offer clear path to recovery. China based Minmetals offered $2.6 billion bid for OZ Minerals. BG Group raises takeover offer for Pure Energy to A$995 million.

[R]3:00AM New York, 7:00PM Sydney - China based Minmetals offered $2.6 billion bid for OZ Minerals. BG Group raises takeover offer for Pure Energy to A$995 million.[/R]

Australian stocks fell on weaker global cues on rising concern global financial conditions are worsening. In Sydney trading ASX 200 index fell 1.5% or 52.6 to 3,464.30.

Of the ASX 200 index stocks, 54 increased, 135 dropped, and 11 were unchanged. Paperlinx Ltd. led advancers in the index shares with a rise of 100% after selling its paper manufacturing division to Nippon Paper for A$600 million.

Gold stocks increased led by Sino Gold with a rise of 5.5% and Lihir Gold with gains of 4.2%.

Minmetals Offers $2.6 billion for OZ Minerals

OZ Minerals agreed to be acquired by Chinese company Minmetals at a cash price of 82.5 cents per share or $2.6 billion. The offer is subject to regulatory and shareholders approval.

The offer is at a 50% premium to OZ Minerals closing price at November 27, 2008.

However Minmetals price will increase if the net sale proceeds received from the asset program in relation to Martabe and Golden Grove exceeds $425 million.

According to OZ Minerals, the offer will enable the company to pay its debt obligations, and it will be requesting lending banks to provide interim support to facilitate the completion of the deal.

Minmetals has committed to repaying OZ Minerals'' debt after the acquisition and “to allow early redemption of or otherwise acquire 5.25% outstanding 2012 convertible bonds.

BG Group Increases Pure Energy Bid

BG Group reported yesterday that it has increased its all-cash takeover offer for Pure Energy Ltd. to A$8 per share and has made its offer unconditional, valuing Pure Energy at A$995 million.

Rival Arrow Energy had raised its offer for Pure Energy on February 11 to A$3 in cash and 1.57 Arrow shares for each Pure share.

Gainers & Losers

Paperlinx led advancers in the ASX 200 index shares with a rise of 100% followed by increases in Lynas Corp. of 25%, in OZ Minerals of 17.3%, in St Barbara Ltd. of 10.3%, and ING Industrial of 10%.

Paperlinx rose after the company sold its paper manufacturing to Nippon Paper for $600 million.

Asciano Group led decliners in the ASX 200 index shares with a decline of 15.9% followed by losses in Brambles Ltd. of 14.3%, in Boart Longyear Group of 12.5%, in Tishman Speyer of 11.5%, and Murchison Metals of 8.6%.

Brambles extended loss after it was downgraded by Bank of America, JPMorgan and Macquarie Group Ltd. after reporting that its first half profit fell 28%