Australia's Northern Star Resources to buy De Grey Mining in $3.3 billion deal (updated)

De Grey Mining

01/12/2024 21:45

(Adds details, background from paragraph 2 onwards)
       Dec 2 (Reuters) - 
    Australian gold miner Northern Star Resources  NST.AX  said
on Monday it will buy De Grey Mining  DEG.AX  in an all-share
deal valuing the smaller miner at A$5 billion ($3.26 billion).
    Under the deal, De Grey shareholders will get 0.119 new
Northern Star shares for each share held, implying an offer
price of A$2.08 per share.
        The offer price represents a 36.8% premium on De Grey's
Friday share close of A$1.52.
  
        Upon completion of the deal, Northern Star shareholders
will own about 80.1% of the merged company, while De Grey
shareholders will own 19.9%.
  
        De Grey's directors have unanimously recommended
shareholders vote in favour of the deal, the two companies said.
  

($1 = 1.5356 Australian dollars)

 (Reporting by Aaditya Govind Rao in Bengaluru; Editing by Chris
Reese)
 ((Aaditya.GovindRao@thomsonreuters.com;))