Allied gold merger valued at around $556 million announced today. Up 60%
The more M&A activity , the more interest in the sector, the more speculative money comes in.
AMX still a big target imo. Management were wise to wait until the sector really heats up.
St Barbara joins Allied as gold sector consolidates Peter Ker June 29, 2012 - 10:34AM
Consolidation in the gold sector continues apace, with St Barbara seeking to join forces with ASX listed Allied Gold.
The $556 million deal would see St Barbara offer cash and scrip for Allied, which would be delisted from the Australian, Toronto and London Exchanges and become a subsidiary of St Barbara.
Under a scheme of arrangement, St Barbara will pay Allied shareholders $1.025 in cash and 0.8 of a St Barbara share for each Allied share. Advertisement: Story continues below
St Barbara operates gold mines near the Western Australian towns of Southern Cross and Leonora, and expects its production total for the year to June 30 to be close to 190,000 ounces, ranking it firmly in the mid-tier of Australia's gold scene.
Allied is also a gold producer with assets in Papua New Guinea, and the companies believe the merged entity could produce 435,000 ounces of gold by this time next year and boast a market capitalisation of close to $1 billion.
The gold sector has recently defied the generally sluggish mood for mergers and acquisitions, with Singaporean group LionGold seeking to acquire or take a large stake in five Australian gold juniors, and Tasmanian focused junior Unity Mining this week declaring it wants to spend its $48 million warchest on an acquisition before the end of 2012.
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