Tuesday, 06 Oct 2020 12:54 PM MYTMELBOURNE, Oct 6 — Australian gold miner Northern Star Resources today offered to buy smaller peer Saracen Mineral Holdings in an agreed A$5.76 billion deal that will create a global top-10 gold miner by market value.
The prospective deal — recommended to investors by both boards in the absence of a superior offer — catapulted shares in each firm 10 per cent higher. It would see Saracen shareholders receive 0.3763 new fully paid ordinary shares in Northern Star for each share held, plus a special dividend of 3.8 Australian cents per share.
The combined company, with mines in both Australia and Alaska, will be aiming for 2 million ounces of gold production by 2027 — a 30 per cent increase in production from 1.6 million ounces currently. By production, the combined Northern Star-Saracen firm aims to rise to the top seven globally over that time.
A combined, strong balance sheet, he said, would allow the new company to better access “accretive M&A opportunities.”
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