Northern Star (ASX:NST) and Saracen (ASX:SAR) shares on watch after merger update

Northern Star Resources Ltd (ASX:NST) and Saracen Mineral Holdings Limited (ASX:SAR) shares will be on watch after the release of a merger update…
The post Northern Star (ASX:NST) and Saracen (ASX:SAR) shares on watch after merger update appeared first on Motley Fool Australia. –

M&A Letters

The Northern Star Resources Ltd (ASX: NST) share price and the Saracen Mineral Holdings Limited (ASX: SAR) share price will be on watch on Thursday after the release of an update on their merger plans this afternoon.

What did they announce?

This afternoon the two gold miners jointly announced that all Northern Star financier consents and material Saracen facilities and relevant agreements consents required under their merger implementation deed have been obtained and are now satisfied.

This brings the completion of the mega merger a step closer, though it is far from being complete.

The scheme of arrangement, which will see Northern Star acquire 100% of Saracen, remains subject to a number of other remaining conditions. These include approval being obtained from Saracen shareholders and court approval.

Saracen is intending to circulate a scheme booklet to shareholders next month. This booklet contains information about the scheme, the independent expert’s report, and the basis for its board’s unanimous recommendation.

If all goes to plan and Saracen shareholders vote to approve the merger, the scheme is expected to be implemented in February 2021.

The scheme continues to be unanimously endorsed and supported by the Northern Star board, subject to no superior proposal for Northern Star emerging.

Why are the two gold miners merging?

When the merger was announced back in October, Northern Star’s Executive Chair, Bill Beament, stated his belief that the merger will create a lot of value for both sets of shareholders.

He explained: “Northern Star has only ever pursued growth when it will create value for shareholders, and this merger-of-equals will create an abundance of value for both Northern Star and Saracen shareholders.”

“This is significant value-creating M&A. Our position as joint venture partners at KCGM, the close proximity of the majority of the combined company’s assets and a host of other synergies makes this a unique opportunity exclusive to Saracen and Northern Star shareholders,” he concluded.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Northern Star (ASX:NST) and Saracen (ASX:SAR) shares on watch after merger update appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!