The Saracen Mineral Holdings Limited (ASX: SAR) share price has dipped slightly today after an update on its special dividend payment.
The post The Saracen (ASX:SAR) share price dips on dividend update appeared first on The Motley Fool Australia. –
The Saracen Mineral Holdings Limited (ASX: SAR) share price has dipped 0.42% in early trade. Shares in the Aussie gold miner are in focus after an update on its special dividend payment to shareholders late last night.
Why is the Saracen share price moving today?
Northern Star and Saracen announced a $16 billion mega merger-of-equals back in October 2020. The proposed merger would see Northern Star acquire 100% of Saracen shares for 0.3763 Northern Star shares.
The Saracen board has unanimously recommended that shareholders approve the proposed scheme of arrangement relating to the deal. Last night’s release provided an update on the special dividend to shareholders as part of the scheme.
Saracen will pay a fully franked special dividend to Saracen shareholders of $0.038 per share, conditional on the scheme becoming effective. Eligible shareholders should also receive a $0.016 per share franking credit, subject to ATO approval.
The Saracen share price is one to watch following the latest update as shareholders react to the news.
The special dividend record date is Wednesday 3 February with scheduled payment on 11 February 2021. The new Northern Star shares are set to commence trading on Monday 15 February 2021.
How have ASX gold shares performed recently?
2020 was a good year for ASX gold shares in general as markets edged towards a more hawkish view.
That meant the Saracen share price rocketed higher and remains up 34.8% in the last year. It was a similar story for Northern Star shares which have climbed 10.0% higher in 12 months.
Both ASX gold shares have seen a soft start to 2021 and edged lower in early trade this year. However, the merger looms as a potential game changer for both Saracen and Northern Star as they look to combine assets and operations to become a serious global player.
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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.