While ASX gold shares are starting the week very strongly, one is standing out with a particularly strong gain.
At the time of writing, the Breaker Resources NL (ASX: BRB) share price is up a whopping 36% to a 52-week high of 39.5 cents.
Why is this ASX gold share rocketing higher?
Investors have been scrambling to buy this ASX gold share after it accepted a takeover offer from Ramelius Resources Ltd (ASX: RMS).
According to the release, the two parties have entered into a bid implementation agreement (BIA), pursuant to which Ramelius will offer to acquire Breaker by way of an all-scrip off-market takeover.
Under the terms of the offer, Breaker shareholders will receive 1 Ramelius share for every 2.82 Breaker shares they own.
This equates to an offer of 40 cents per share, which is a 39% premium to its last close price and values Breaker's undiluted equity at $130.7 million.
What's next?
Breaker's directors have unanimously recommended that its shareholders accept the offer. This is in the absence of a superior offer.
Furthermore, they intend to accept the offer for all the shares they own or control. This currently represents approximately 4% of its issued shares. But they are not alone. Breaker's two largest shareholders, Electrum Strategic Opportunities Fund and Paulson & Co, with a combined shareholding of approximately 19.92% will do the same.
Why acquire Breaker?
Ramelius revealed that acquiring this ASX gold share is in line with its long term strategy. It explained:
Ramelius' long-term strategy has been to create shareholder value through organic and inorganic growth opportunities. The acquisition of Breaker is in line with Ramelius' objective to execute synergistic corporate opportunities to enhance the development of a new production hub following the complementary acquisition of Apollo Consolidated Limited and its flagship Rebecca project which completed in early 2022.
