Gold fever continues down under as Regis Resources (RRL AU) and Vault Minerals Ltd (VAU AU) announce a A$11bn merger, creating the ASX’s third largest gold miner.
By way of a Scheme, Regis is offering 0.6947 new shares for each Vault share. Post merger, Regis and Vault shareholders will hold 51% and 49% in the combined entity.
Both boards unanimously back the transaction, which is projected to complete late August, early September. Clean deal.
The Trade:
Another straightforward, albeit, large gold merger.
Trading at a gross/annualised spread of 5.4%/18% assuming late August completion.
If you can take down borrow cheaply in Regis, do so, if not already.
Index related, the Quiddity Index team reckons 4.2 days of buying for Vault (to replace Qube Holdings (QUB AU) end of June, early July; and 6.4 days for Regis - this was prior to this deal being announced.
In addition, Regis and Vault are somewhat high in the ranking to be added to the market vector gold miners index late June - with a decision around the 10th June.