MAC Copper confirms $1.6b takeover bid from Harmony Gold
Make us a preferred source
Make us a preferred source on Google
More news: South Africa's Harmony Gold will enter a scheme implementation deed with MAC Copper to fully acquire the Australian miner, 15 months after it listed on the ASX and NYSE.
The numbers: Harmony Gold has proposed to buy all shares in MAC for US$12.25 ($18.93) per share. This represents a 21.1% premium on MAC Copper's last trading price on the ASX of $15.51 and a 20.7% premium on its last trading price on the NYSE of US$10.15.
The proposed price per share is also a 32.8% premium on the volume weighted average ASX price and a 32.1% premium on the volume weighted average NYSE price.
This implies a fully diluted equity value for MAC of about US$1.03 billion. Harmony will fund the acquisition through existing cash reserves and committed debt funding. A scheme meeting will be held in Q4 2025.
The deal has already been unanimously accepted by MAC’s board, representing 2.4% of shareholder votes. A further 20.1% of votes collectively held by other investors are also in favour of the scheme.
Completion of the deal is subject to approval from Australia's Foreign Investment Review Board and the South African Reserve Bank, as well as existing streaming arrangements with Osisko Bermuda and the royalty with Glencore operations.
The implementation deed also details circumstances where MAC may be required to pay a break fee of about US$23.6 million or Harmony would be required to pay about US$11.8 million.
What they said: “The board believes the Transaction provides MAC shareholders with a compelling opportunity to de-risk their investment and realise an attractive cash value of US$12.25 per MAC share, which is also a premium to MAC’s recent historical trading levels,” MAC CEO Mick McMullen said.
“Additionally the Scheme is subject to limited conditionality, which provides MAC shareholders with a high degree of Transaction certainty.
“The Transaction also presents a great outcome for other stakeholders in the CSA Copper Mine, who will benefit from the stewardship of a well-respected and high-quality operator in Harmony, who is looking to build a copper business in Australia through the acquisition of MAC and the development of their Eva Copper Project in Queensland.”
MAC Copper reportedly set to announce takeover bid
More news: MAC Copper is reportedly set to detail a takeover bid for the miner after entering a trading halt on Tuesday ahead of announcement on a "control transaction".
According to The Australian, MAC Copper recently gave exclusive information to several potential suitors, including South Africa's Harmony Gold, aluminium miner South32, and copper miner Sandfire Resources.
The paper also said it understands that MAC Copper is being advised by Barrenjoey.
Meanwhile, the Financial Review reported an announcement would likely made be after market close on Tuesday after MAC Copper received a bid from an overseas listed miner. It said Johannesburg and New York-listed Harmony Gold was the most likely buyer.
MAC Copper, formerly Metals Acquisition Limited, dual listed on the ASX and the New York Stock Exchange in February 2024 after it bought the CSA copper mine in Cobar, New South Wales, from Glencore in June 2023.
Shares in MAC Copper last traded at $15.51, down 17.94% since listing.
MAC Copper halts trading ahead of control transaction
The news: MAC Copper's shares are in a trading halt ahead of an announcement relating to a potential transaction that would shift the ownership or controlling stake in the company.
The numbers: Shares in the company, which operates a NSW copper mine, were trading at $15.51 at last close.
The stock hit a 12-month low in early April, reflecting volatile copper prices amid the uncertainties of the US-China trade war, but it has been steadily rising since and is up 5.8% over the last month.
The context: In a statement, MAC Copper said "the trading halt is requested pending an announcement relating to a potential control transaction".
Trading will resume on the earlier of 29 May or when MAC Copper makes its intended announcement.
The sources: ASX, The Australian, Australian Financial Review
