Copper miner OZ Minerals has launched a $444 million takeover bid for Avanco, sending shares in the ASX-listed exploration firm skyrocketing.
OZ Minerals said on Tuesday it has a pre-bid acceptance deed with Appian - which with an 18.45 per cent holding is Avanco's largest shareholder.
It has indicated support for its cash-and-scrip offer from shareholders representing 30.62 per cent of the company, whose shares more than doubled in value after Avanco's board unanimously recommended shareholders accept the proposal.
The effective offer price of 16.8 cents per share represented a 118 per cent premium to Monday's closing price of 7.7 cents.
At 1232 AEDT on Tuesday, the stock had more than doubled in value, up 7.8 cents to 15.5 cents.
Avanco managing director Tony Polglase said OZ Minerals strongly supported Avanco's strategy.
"OZ Minerals' offer is at a significant premium to recent trading levels and provides an attractive opportunity for Avanco shareholders to both crystallise value today whilst also maintaining base metals exposure through their holding in OZ Minerals," Mr Polglase said.
OZ Minerals shares were down three cents, or 0.33 per cent, at $8.975.
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