The OZ Minerals Limited (ASX: OZL) share price has been paused on Wednesday.
This follows a request for a trading halt from the copper miner prior to the market open this morning.
Why is the OZ Minerals share price paused?
OZ Minerals requested a trading halt this morning for the following reason:
In accordance with ASX Listing Rule 17.1, the Company requests the trading halt pending an announcement by the Company in relation to a potential change of control transaction.
The copper miner has requested that its shares remain halted until the earlier of the commencement of trade on Friday or the release of an announcement.
What's going on?
As readers may be aware, back in August, BHP Group Ltd (ASX: BHP) made a $25.00 per share offer to acquire OZ Minerals.
Despite this being a 32% premium to the OZ Minerals share price at the time, it wasn't enough for the miner's 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.
OZ Minerals CEO, Andrew Coles, also highlighted that the company has "a unique set of copper and nickel assets, all with strong long-term growth potential in quality locations." Coles further noted that these minerals "are in strong demand particularly for the global electrification and decarbonisation thematic" and that the proposal failed to sufficiently recognise these attributes.
What's the latest?
While nothing has been confirmed from either party, the rumour on the street is that BHP has returned with an improved offer in the high $20s.
This compares to the current OZ Minerals share price of $26.30.
Whether this will be enough to get due diligence access, we'll find out in the coming days. Though, it is worth noting that some analysts have previously stated that an offer closer to $40.00 may be required to get a deal over the line.
