OceanaGold (OGC CN) Claims Ausgold (AUC AU). Clean Deal
Gold fever continues Down Under as Ausgold Ltd (AUC AU) enters into a Scheme with OceanaGold Corp (OGC CN).
OceanaGold is offering 0.03365 new shares for each Ausgold share, or an indicative Offer price of A$1.36/share, a 28% premium. A capped cash option is afforded, also at A$1.36/share.
Post merger, Ausgold shareholders would hold ~7.9% (if 100% scrip consideration). A key shareholder and directors (collectively holding 9.1%) are supportive. December completion expected. Clean deal. Interlopers possible.
The Trade:
A straightforward gold merger.
Trading tightish at a gross/annualised spread of 4.2%/11.7%, assuming late December completion.
If you can take down borrow cheaply in OceanaGold , do so, if not already, and short OceanaGold late in the day, and buy Ausgold early in the day.
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