OZ Minerals recommends BHP’s takeover offer, Endeavour Group’s national gambling operator faces 62 charges and ASX scraps blockchain project

OZ Minerals (ASX: OZL) has announced its board plans to recommend the latest revised takeover offer from mining giant BHP Group (ASX: BHP) of $28.25 per share, valuing OZ Minerals at $9.6 billion.

The offer beats BHP’s previous offer of $25 per share tabled 15 weeks ago, which OZ deemed too low.

However, after renewed talks, the OZ board said it will recommend the $28.25 per share offer to shareholders.

BHP chief executive officer Mike Henry said the proposal “represents a highly compelling offer for OZ shareholders, providing certainty at a time of macroeconomic uncertainty and market volatility, and risks for the industry”.

The mining giant confirmed it would be the “best and final price” it is willing to offer.

The push to acquire OZ Minerals comes as BHP’s aims to consolidate the copper mining province in South Australia’s Gawler Craton region, where OZ’s Carrapateena and Prominent Hill mines are located next to BHP’s Olympic Dam.

Its acquisition will also help BHP solve the supply problem that has challenged its Western Australian nickel division for years, not producing enough nickel to run its concentrators and smelters at full capacity.

OZ Minerals recently announced plans to build a new nickel, copper, and cobalt mine at West Musgrave in WA, so the acquisition would help bolster its growth of its nickel supply chain moving forward.

BHP

Meanwhile, workers at BHP’s Escondida mine in Chile, the world’s largest copper mine, have announced they will go strike on 21 November and 23 November over concerns relating to labour demands at the site.

The union, Sindicato 1, made up of more than 2,000 workers at the mine, which is majority owned and operated by BHP, alleged the giant failed to comply with legal regulations and the current collective agreement.

The mining giant said the strike was unjustifiable as the company complies with such safety standards and contractual commitments.

“Escondida is fully complying with legal regulations and the current collective agreement – matters for which it is constantly being monitored by authorities,” it said.

“There is no justification for the forceful action announced by one of the company’s existing unions.”

The union confirmed workers will halt all shifts during the announced strike dates but will offer required minimum services at the site during that time.

BHP believes the strike is a ploy aimed at pressuring the giant into paying the union, as well as a bonus to its partners, which it said has no legal basis.

The giant said it was willing to negotiate and remains hopeful the union will end the ongoing strike threats.

It’s not the first time both BHP and the union have faced off, after workers went on strike for more than 40 days in 2017.

Endeavour Group

Australia’s largest poker machine operator, Australian Leisure and Hospitality Group (ALH), is being faced with penalties of to $1.35 million after the Victorian Gambling and Casino Control Commission (VGCCC) alleged it failed to install required pre-commitment technology.

The VGCCC issued 62 charges against the operator, which is owned by Endeavour Group (ASX: EDV).

ALH alleged to operate 220 gaming machines for up to five weeks without YourPlay enabled, which allows users to set limits around how much time and money is spent playing.

The feature is optional for players, however YourPlay must be installed and available on all gaming machines in operation within Victoria.

VGCCC chief executive officer Annette Kimmitt said all operators are now on notice.

“Anyone who holds a gambling licence in Victoria is on notice that they must, at a minimum, comply with their legal obligations to protect patrons from gambling harm,” she said.

“Having YourPlay installed and available on electronic gaming machines is a mandatory requirement to support safer gambling.”

ALH has turned off all 220 non-compliant machines, spanning across 62 of its 77 venues.

Perpetual

Perpetual (ASX: PPT) and Pendal Group (ASX: PDL) have announced adjustments to the $2.34 billion deal agreed on by both parties, reducing the cash component and increasing the stock make-up of the deal.

The adjustments will see an increase of one Perpetual share for every seven Pendal shares, instead of one perpetual share to every 7.5 Pendal shares, which was previously announced.

Also, this week a New South Wales Supreme Court ruled that Perpetual could face a costly fee if it chooses to walk away from the deal with Pendal, stating it was not capped at $23 million, as other legal action can be taken.

Pendal chairman Deborah Page said the company remains committed to seeing the deal out.

“The Pendal Board continues to unanimously recommend Pendal shareholders vote in favour of the Scheme in the absence of a superior proposal,” she said.

Pendal Australia chief executive officer Richard Brandweiner also urged the company still holds the belief that the deal would create Australia’s pre-eminent global asset manager.

“Since then – despite what you may have read in the press – Pendal and Perpetual have been working together constructively to finalise the details of this proposal,” he said.

ASX

The Australian Securities Exchange (ASX: ASX) has scrapped its multimillion-dollar blockchain project amid concerns it would become difficult to meet legal requirements.

The ASX announced its plans to develop the project, worth $250 million, in an effort to replace its ageing Clearing House Electronic Subregister System (CHESS) platform, which has been operating for around 25 years.

After the replacement project was scheduled for release in April 2021, delays caused by the global pandemic and lack of market readiness caused the date to be pushed back to April 2022, before ultimately being moved to 2023.

ASX chief executive officer Helen Lofthouse said the decision to scrap the project was a result of its recent findings.

“Replacing CHESS is a large and complex undertaking,” she said.

“While the ASX is keen to embrace technology that benefits the market, it is clear we need to revisit the solution design as well as validate and test feedback from the independent review to assess changes required to bring the project to market safely, efficiently and for the long-term.”

The ASX will write-off up to $255 million pre-tax in costs associated with the project and Ms Lofthouse urged CHESS would continue running until something more suitable was chosen.

“Our priority is continuing to maintain the stability of the existing CHESS system, which underpins the smooth operation of our financial markets,” she said.

In its efforts to find a more suitable option, ASX has appointed technology transformation executive Tim Whiteley to the role of project director for the next phase of the CHESS replacement project.

Mr Whiteley’s role will focus on looking at the solution design, establishing new project governance arrangements, strengthening vendor management, and positioning the project for its next delivery phase.