Northern Star wins court approval for De Grey acquisition
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The news: The Federal Court of Australia has approved Northern Star’s proposed acquisition of De Grey Mining announced in December last year.
The numbers: The takeover will see Northern Star acquire 100% of the shares in rival ASX gold miner De Grey for an equity value of $5 billion. The deal represents an implied offer price of $2.08 per De Grey share.
Northern Star shareholders will own around 80.1% of the combined group, with De Grey shareholders holding the remaining 19.9%.
The context: In an ASX announcement filed on Monday night, De Grey said that the court made an order to convene a shareholder meeting to consider and vote on the scheme of arrangement. De Grey has scheduled the scheme meeting to be held on 16 April at 2pm (AWST) in Perth, with an implementation date of 5 May 2025.
The scheme has previously been unanimously recommended by De Grey's board of directors.
The deal will see Northern Star acquire De Grey's flagship Hemi project in Western Australia, one of the world's largest undeveloped gold projects in a Tier-1 mining jurisdiction. The companies said that Northern Star's exploration, mine development and operating expertise is expected to unlock the long-term value potential of the Hemi project, and "generate superior returns to all shareholders".
The sources: ASX announcement, Capital Brief
