Ausgold to be Acquired by OceanaGold
Key points
- OceanaGold to acquire Ausgold in a recommended scheme
- Implied offer price of A$1.36 per Ausgold share
- Ausgold shareholders to receive up to 7.9% of OceanaGold
- Scheme expected to be accretive to OceanaGold
- Transaction subject to shareholder and regulatory approvals
Full summary
Ausgold Limited (ASX: AUC) and OceanaGold Corporation (TSX: OGC, NYSE: OGC) have entered into a binding Scheme Implementation Deed under which OceanaGold will acquire 100% of Ausgold. The transaction values Ausgold at an implied offer price of A$1.36 per share, representing a premium of 28% over Ausgold's last closing price. Ausgold shareholders will receive 0.03365 OceanaGold shares for each Ausgold share held, or the option to receive cash up to a maximum pool of A$194 million. The combined entity will have a market capitalization of approximately US$6.9 billion and will benefit from OceanaGold's expertise in exploration, development, and operations. The transaction is expected to be accretive to OceanaGold and is subject to regulatory and shareholder approvals.
Guidance
Implied offer price of A$1.36 per Ausgold share, up to 7.9% of OceanaGold for Ausgold shareholders
Outlook
The acquisition is expected to enhance OceanaGold's production and growth pipeline, with the Katanning Gold Project contributing to future cash flow and earnings per share.
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