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- Saracen Mineral Holdings’ (SAR) shareholders have voted yes to the Northern Star (NST) merger
- Last year, Northern Star announced it wanted to buy Saracen, in a deal that would see the two merged companies become a top-10 global gold company
- Now, over 98 per cent of Saracen shareholders have voted in favour of the scheme
- Saracen will now need approval from the Supreme Court of Western Australia, with a hearing scheduled for Tuesday, February 2
- Saracen shares ended the day down 0.21 per cent, trading at $4.81 per share
Saracen Mineral Holdings’ (SAR) shareholders have voted yes to the Northern Star (NST) merger.
Last year, the two gold giants proposed a merger to become a top-10 global gold producer.
Now, over 98 per cent of Saracen shareholders have voted in favour of the scheme.
Saracen Managing Director Raleigh Finlayson said the merger has seen exceptionally strong support.
“Our shareholders have been virtually unanimous in their support for our merger with Northern Star,” he said.
“I would like to thank them for their huge vote of confidence in our plan to create a world-scale gold miner which will benefit from extensive synergies, economies of scale, outstanding free cash flow and one of the strongest growth profiles in the global gold mining industry,” he added.
If the merger goes ahead, the combined company could have a net present value of between $1.5 billion to $2 billion.
Whats’s next?
Saracen will now need approval from the Supreme Court of Western Australia. The hearing is scheduled for Tuesday, February 2, 2021.
If the Supreme Court approves the merger, the company will then need the approval of the Australian Securities and Investments Commission, expected on Wednesday, February 3.
If all this goes to plan, Saracen shares will be suspended from trading on the ASX the same day.
Despite this positive news, Saracen shares ended the day down 0.21 per cent, trading at $4.81 per share at 4:10 pm AEDT.