In today’s briefing:
- OZ Minerals May Be Narrowing the Price Gap to a BHP Deal
- Link’s On Again-Off Again Scheme Is All but Off
OZ Minerals May Be Narrowing the Price Gap to a BHP Deal
- Six+ weeks ago, BHP Group Ltd (BHP AU) approached OZ Minerals Ltd (OZL AU) with a bid of A$25/share. Oz very quickly rejected it and said it was worth more.
- The back and forth immediately post-rejection was not conciliatory. My expectation was that if they came back quickly, they’d have to pay A$30. But coming back quickly was tough.
- There are hints now that may be the price. But it may not be. It will take time.
Link’s On Again-Off Again Scheme Is All but Off
- Dye & Durham/DND has proposed a revised Link Administration (LNK AU) offer to address any FCA redress payments. Around A$1.00 per share will hang on the outcome of the FCA investigation.
- The Link Board has said it cannot recommend the revised proposal based on value, structure and alternatives available to Link. We agree with the Board’s view.
- The scheme is all but dead. The shares are now a back-end play and remain attractive for value investors.
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