Gold miners Regis Resources and Vault Minerals to merge
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The news: Gold miners Regis Resources and Vault Minerals have agreed to combine in a merger-of-equals, under which Regis will acquire 100% of the shares in Vault.
The numbers: Under the scheme of arrangement, Vault shareholders will receive 0.6947 new shares in Regis for each Vault share held.
Upon implementation of the scheme, Regis shareholders will own 51% of the combined company, with Vault shareholders owning the remaining 49%.
The companies said the merger could unlock cost efficiencies, realise over $500 million of corporate tax benefits and lower the cost of capital for the combined company.
The merged business will have a pro forma market capitalisation of around $10.7 billion. It is expected to produce more than 700,000 ounces of gold per year.
The context: The scheme has been unanimously recommended by the boards of Regis and Vault.
The combined company will be led by Vault’s Russell Clark as non-executive chairman and Regis’ Jim Beyer as managing director and chief executive. The board will be comprised of four directors from each of the current Regis and Vault boards.
The source: ASX
