Back on the 5th May, West Aussie gold miners Regis Resources (RRL AU) and Vault Minerals Ltd (VAU AU) announced a A$11bn scrip merger, by way of a Scheme.
What appeared to be another straightforward, albeit, large gold merger, has unravelled after Genesis Minerals (GMD AU) pitched a “superior” cash/scrip Offer yesterday morning.
Post merger, Genesis shareholders would own ~59.8% of the combined company, and Vault ~40.2%; versus 51%/49% under Regis’ terms. Regis has until the 13th July to match Genesis’ terms.
The Trade:
Perhaps Regis matches. But ultimately I see Regis taking the A$50mn break fee and walking.
Regis shares were down ~7.5% ahead of Genesis’ Offer, reflecting market concerns they were overpaying. Genesis/Vault synergies are more apparent.
Vault is trading almost right at terms to Genesis’ Offer.
If you can take down borrow cheaply in Genesis, do so, if not already.