TAKEOVER COMPLETED

Brad Holland

Brad has over 20 years experience in the Australian and US equities and options markets. Brad specialises in equities and options for capital growth, income generation and capital protection. He also specialises in finding opportunities in small to medium cap stocks. Brad holds RG146 - Securities & Managed Investments and Accredited Derivatives Adviser Level 2 qualifications.

April 21, 2023

High Conviction Report | OZL.AX

Wednesday was the last day of trading for Oz Minerals (OZL) shares. The takeover by BHP Group (BHP) is due to be finalised on the implementation date on the 2nd of May. Shareholders will receive.

  • $1.75 special dividend
  • $0.75 of ranking credits
  • $26.50 takeover proceeds

The main reason we opened a position in OZL, a share with limited upside at the time we opened the position, was because of the franking credits on offer and the returns on offer that were not correlated to overall market movements.

The chart shows that when the overall market fell in March, the OZL share price was tracking sideways because of the certainty that BHP would complete the takeover.

In the end it was an excellent risk adjusted return.

CLOSED POSITION RESULT

Dividend: $1.75 x 2,000 = $3,500.00

Franking Credits: $0.75 x 2,000 = $1,500.00

Capital Loss: $1.4 x 2,000 = $2,800.00

Total profit of $2,200 or a 3.94% return on funds invested. The position was opened for 106 days, so the annualised return is 13.56%.

This is general advice only. MF & Co Asset Management has not considered your personal financial needs, objectives or current situation. This information is not an offer, solicitation, or a recommendation for any financial product unless expressly stated. You should seek professional investment advice before making any investment decision.

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