Oz Minerals Limited offers half a billion for Avanco Resources Limited

Copper-focused miner Oz Minerals Limited (ASX: OZL) has arguably been generous with its off-market takeover offer for copper explorer Avanco Resources Limited (ASX: AVB).

The offer comprises a 50/50 cash/scrip consideration, of 0.085c cash and 0.009c Oz Minerals shares for each Avanco share – totalling $444 million.

The takeover would significantly diversify Oz Minerals’ asset portfolio allowing it to operate an enhanced asset pipeline across multiple provinces.

Avanco operates copper prospects in Brazil, with mining-friendly jurisdictions and well-established infrastructure.

Today’s announcement out of Avanco noted 30.62% of shareholders were onside for the takeover, with the board offering “unanimous support” of the Oz Minerals offer.

But Oz Minerals investors may have balked at the Avanco price tag today as shares slid 4.4% at the time of writing, to $9.00, while Avanco shares rose a whopping 103% to 15c per share.

Oz Minerals reported strong financial results for the FY17 with NPAT up 114% to $231 million, underlying revenue up 24% and underlying EBITDA rising 44% to $539 million.

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