The OZ Minerals Limited (ASX: OZL) share price could be one to watch closely on Monday.
This follows a major development that was announced by the copper miner this morning.
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Why is the OZ Minerals share price on watch?
All eyes will be on the OZ Minerals share price this morning after the miner revealed that it has rejected a takeover offer from mining giant BHP Group Ltd (ASX: BHP).
According to the release, the company received an unsolicited, conditional and non-binding indicative proposal from BHP to acquire all shares in OZ Minerals for $25.00 per share in cash via a scheme of arrangement.
Based on the latest OZ Minerals share price of $18.92, this implies a premium of 32.1% for shareholders.
However, that wasn't enough for the OZ Minerals board. With the assistance of its financial and legal advisers, the board unanimously determined that the indicative proposal significantly undervalued OZ Minerals and was not in the best interests of shareholders.
It is worth noting that the OZ Minerals share price is down materially from its 52-week high of $29.75. This appears to have been driven largely by copper price weakness in 2022.
OZ Minerals' managing director and CEO, Andrew Cole, commented:
We have a unique set of copper and nickel assets, all with strong long-term growth potential in quality locations. We are mining minerals that are in strong demand particularly for the global electrification and decarbonisation thematic and we have a long-life Resource and Reserve base. We do not consider the proposal from BHP sufficiently recognises these attributes.
What now?
The OZ Minerals board and management team highlighted the strong ongoing support it has received from its stakeholders to date and advised that it will continue to work with them on building a best-in-class global copper business with the objective of maximising long term shareholder value.
Though, the story may not end here. The release notes that BHP is understood to have acquired a 5% stake in the company.
