OZ Minerals’ recent $418 million takeover offer for Brazilian-focused copper-gold company Avanco Resources has been referred to by some Avanco shareholders, primarily commenters from the company’s second-biggest investor, London-based Greenstone Resources (16.68 per cent), as undervalued.
In a recent interview with the Australian Financial Review, Greenstone senior partner Mark Sawyer stated that “the current offer significantly undervalues the attractive pipeline of projects currently owned by Avanco”.
Third-biggest owner Blackrock (11.6 per cent) has also agreed to sell, along with several minor investors, putting OZ’s preliminary ownership in Avanco at just over 35 per cent currently — the company requires 50.1 per cent ownership for the takeover deal to proceed.
