These two high profile Australian miners has finally tied the knot on June 16 2008 when Oxiana’s AUSD$4.3 billion takeover of Zinifex was approved at a meeting on Monday by 99,27% of votes cast on the resolution; and 97,15% of the number of shareholders voting.
Some Details Of The Takeover
– Zinifex shareholders will receive 3,1931 Oxiana shares for each Zinifex share they own, which will give the shareholders of each firm 50% of the merged entity.
– Zinifex generated 87% of sales from zinc last year, while Oxiana generated 53% of its revenue from copper, and 30% from zinc. While most of the company’s revenue – 61% – will be from zinc, followed by copper, lead, gold and silver respectively, the merger will still enable Zinifex shareholders to dilute their exposure to the lacklustre metal.
– Zinc has been the worst performing base metal over the last 18 months, and the market is expected to continue in a supply surplus this year. This was probably the main issue that made Zinifex share price to cripple from an all time high of $AUSD21 to AUSD$8.x today.
5 year Zine Price
Zinifex Share Price
– OZ Minerals will have a market capitalisation of some A$9-billion at current share prices.
– OZ Minerals will be the world’s second-largest zinc producer, and Australia’s third largest diversified mining group after BHP and Rio Tinto.
– The new company will have five operating mines and four projects under development, as well as five potential projects in the pipeline.