Northern Star about to Take Over Saracen Mineral Holdings
The deal will have a total volume of around 6 billion Australian Dollars.
Northern Star Resources (OTCPK: NESRF) agrees to acquire smaller Australian rival Saracen Mineral Holdings (OTCPK: SCEXF) in an A $ 5.76 billion (US $ 4.14 billion) deal, creating a new global top 10 gold mine is being built according to its market valuation of ~ A $ 16 billion. Under the terms of the deal, Northern Star offered 0.3763 of its shares for each Saracen share, which is A $ 5.20 / share according to Bloomberg calculations; Saracen shareholders will also receive a special dividend of 3.8 Australian cents per share. Northern Star will own 64% of the combined entity and Saracen will own the remaining 36%. The deal comes after the two mining companies each acquired a 50% stake in Australia's huge KCGM operation, commonly known as Super Pit, Australia's largest open pit gold mine.