Analyst Note
| Jon Mills, CFA |No-moat BHP has lobbed a higher indicative offer of AUD 28.25 per share for no-moat copper miner Oz Minerals via a scheme of arrangement. This is 13% higher than BHP’s original offer of AUD 25 in August, and is subject to due diligence, approval by Oz Minerals’ board and its shareholders, and other conditions. BHP’s higher offer is its best and final in the absence of a competing offer. Oz Minerals also has the option of paying a franked dividend before the deal closes. BHP’s consideration will reduce by the amount of any dividend or return of capital paid by Oz Minerals.