Genesis Minerals, Vault Minerals Agree to AU$12.6 Billion Merger After Genesis Outbids Regis
Australian gold producers Genesis Minerals (ASX:GMD) and Vault Minerals (ASX:VAU) have agreed to merge, creating Australia's third-largest gold producer with a pro-forma market capitalization of AU$12.6 billion, the companies announced Tuesday. Under the scheme of arrangement, Vault shareholders will receive 0.7629 new Genesis shares plus AU$0.475 in cash for each Vault share held, implying a value of AU$5.274 per share based on prices at the time the offer was announced. Genesis shareholders will own about 59.8% of the combined group, with Vault holders owning the remaining 40.2%. The deal caps a bidding war for Vault. In May, Vault and Regis Resources (ASX:RRL) announced their own proposed merger, potentially creating a AU$10.7 billion combined company. Last week, Genesis made a rival bid, which Vault described as a "superior proposal." Vault's board ultimately backed the Genesis terms instead, as it represented a 14.5% premium to the Regis offer price of AU$4.61. Vault will pay Regis a break fee of about AU$50.7 million after walking away from their agreement. The combined Genesis-Vault group will produce an estimated 600,000 to 700,000 ounces of gold annually, all from.
Australian gold producers Genesis Minerals (ASX:GMD) and Vault Minerals (ASX:VAU) have agreed to merge, creating Australia's third-largest gold producer with a pro-forma market capitalization of AU$12.6 billion, the companies announced Tuesday.
Under the scheme of arrangement, Vault shareholders will receive 0.7629 new Genesis shares plus AU$0.475 in cash for each Vault share held, implying a value of AU$5.274 per share based on prices at the time the offer was announced.
Genesis shareholders will own about 59.8% of the combined group, with Vault holders owning the remaining 40.2%.
The deal caps a bidding war for Vault.
In May, Vault and Regis Resources (ASX:RRL) announced their own proposed merger, potentially creating a AU$10.7 billion combined company.
Last week, Genesis made a rival bid, which Vault described as a "superior proposal." Vault's board ultimately backed the Genesis terms instead, as it represented a 14.5% premium to the Regis offer price of AU$4.61.
Vault will pay Regis a break fee of about AU$50.7 million after walking away from their agreement.
The combined Genesis-Vault group will produce an estimated 600,000 to 700,000 ounces of gold annually, all from.