Magnetic Resources (MAU AU): Genesis Minerals (GMD AU)’s Clean Scheme
The gold rush continues as Magnetic Resources (MAU AU) enters into a Scheme with Genesis Minerals (GMD AU).
Via the default option, Genesis is offering A$1.40/share in cash plus 0.0873 new Genesis shares (~70/30, cash/scrip) for each Magnetic share - or a A$2/share indicative Offer price.
Magnetic shareholders will hold ~2.4% of the enlarged gold play. 19.64% of Magnetic shareholders are supportive. Looks clean
The Trade:
Another straightforward gold merger.
Trading tight at a gross/annualised spread of 1.7%/8.8% assuming late April.
You could look to take down borrow in Genesis.
But depending on your gold tilt, you might just want to be long Magnetic. Or Genesis. Or both.
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