Investing.com– Australia’s and said on Tuesday they had agreed to merge in a deal that will create a A$10.7 billion ($7.7 billion) producer.
Under the agreed all-share transaction, Regis will acquire 100% of Vault, with Vault shareholders receiving 0.6947 new Regis shares for each share held.
Upon completion, Regis shareholders will own about 51% of the combined group, with Vault investors holding the remaining 49%.
Get real-time updates on market-moving news with InvestingPro
Vault shares surged over 5% in early trading on Tuesday, while the Regis stock slipped nearly 4%.
The companies said the merged entity is expected to produce more than 700,000 ounces of gold annually from a portfolio of five operating assets, primarily in Western Australia, positioning it as the third-largest primary gold producer listed on the ASX.
The combined company will have a debt-free balance sheet and pro forma cash and bullion of about A$1.9 billion, alongside annualised free cash flow estimated at A$1.7 billion, the companies said.
It will also hold 6.0 million ounces of ore reserves and 20.5 million ounces in mineral resources, supporting long-life operations.
The merger is expected to unlock synergies, including procurement savings and more than A$500 million in corporate tax benefits, while improving access to capital and global market relevance.
Vault’s board unanimously recommended the deal, subject to no superior proposal and an independent expert deeming it in shareholders’ best interests.
The transaction is targeted for completion by the September quarter, pending shareholder, court and regulatory approvals.
