St Barbara, Allied Gold to join forces by: Rhiannon Hoyle From: The Wall Street Journal June 29, 2012 11:47AM GOLD producers St Barbara and Allied Gold Mining have agreed to merge the two companies to create a combined group with a market value of around $1 billion. Under the offer, St Barbara would acquire Allied Gold for $1.025 in cash and give Allied's shareholders 0.8 St Barbara shares for each share in Allied Gold. The offer values Allied at $556 million, and its shares at A$2.72 a 90 per cent premium on its ASX closing price Thursday of $1.435 a share.
SBM may have more downward movement, but surely this will make it a good med-long term hold? I remember how cheap they were when they took over Gwalia Deeps mine in Leonora. Share price has come a long way since then.
They were trumped by Conquest Mining in Conquest's merger with Catalpha to create Evolution... St Barbara was completely off my radar because they were in trouble re: replacing ounces. I wonder if they got desperate and over paid for Allied. I haven't done any math on it.
