Ramelius Resources is set to acquire Spartan Resources in a merger deal that values Spartan’s shares at a significant premium. The agreement, confirmed following earlier reports, will see Ramelius acquire all ordinary shares in Spartan for 25 cents in cash and 0.6957 new Ramelius shares for each Spartan share held. This translates to a value of $1.78 per Spartan share, representing an 11.3% premium over Spartan’s last traded price. The transaction implies a market capitalization of $2.4 billion for Spartan Resources.
Sources familiar with the matter indicated that the transaction is structured as a scheme of arrangement, reflecting the scale of both gold producers. The merger comes with a relatively low premium, which is attributed to Spartan’s strong share price performance compared to Ramelius. The deal is expected to consolidate the operations of the two companies and provide synergistic benefits in the gold mining sector.
