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Why the Northern Star and Saracen Mineral merger is getting closer

asx gold share merger represented by hand shake of two golden hands
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The mega merger between gold miners Northern Star Resources Ltd (ASX: NST) and Saracen Mineral Holdings Limited (ASX: SAR) took a step closer today.

This afternoon Saracen provided the market with an update on a shareholder vote at its virtual scheme meeting today.

What was announced?

According to the release, Saracen shareholders have voted overwhelmingly for the deal that will create a top 10 global gold miner and unlock material synergies.

The release advises that 99.95% of Saracen shares and 98.18% of Saracen shareholders that voted at the scheme meeting were cast in favour of the deal.

Saracen’s Managing Director, Raleigh Finlayson, was pleased to see the merger win exceptionally strong support from shareholders.

He commented: “Our shareholders have been virtually unanimous in their support for our merger with Northern Star. I would like to thank them for their huge vote of confidence in our plan to create a world-scale gold miner which will benefit from extensive synergies, economies of scale, outstanding free cash flow and one of the strongest growth profiles in the global gold mining industry.”

“We are looking forward to implementing our strategy, which will see us target annual production of two million ounces a year exclusively in tier-1 locations,” he added.

What’s next?

With the vote a success, Saracen will now seek the Supreme Court of Western Australia’s approval of the scheme at a hearing scheduled for 2 February.

If the Supreme Court of Western Australia approves the scheme, Saracen intends to lodge the orders with the Australian Securities and Investments Commission on 3 February, so that the scheme will become effective on that date.

If this occurs, Saracen shares will be suspended from trading on ASX with effect from the close of trading on 3 February. After which, implementation of the scheme is expected to occur on 12 February, subject to the satisfaction or waiver of the remaining conditions to the scheme.

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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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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