The Australian Securities Exchange (ASX) is angling to beat its previous record, but today’s big winner was De Grey Mining (ASX:DEG) with a $5 billion all-scrip takeover offer from Northern Star Resources (ASX:NST).
De Grey shares rallied 29.61% to $1.97 on the offer of 0.119 Northern Star shares for each De Grey share held, which equates to around $2.08 per share and a 37.1% premium to the closing price of De Grey shares on 29 November.
The S&P/ASX 200 is continuing in positive territory, ending the session up 11.70 points, or 0.14%, at 8,447.90 on Monday (2 December), leaving it 0.34% of its 52-week high and up 0.64% over the past five days.
Seven of the 11 sectors advanced by the closing bell. Energy climbed 0.64%, materials rose 0.19% and industrials edged up 0.12%.
While De Grey shareholders were overjoyed, Northern Star investors were not as positive, driving shares down 5.26% to $16.59.
Gold Road Resources (ASX:GOR) maintained its gains over the course of the day to close up 9.38% at $2.04, while fellow gold producers Vault Minerals (ASX:VAU), West African Resources (ASX:WAF) and Evolution Mining (ASX:EVN) ended the day in the red.
Vault slipped 4.29% to $0.34, West African retreated 3.96% to $1.46 and Evolution closed down 3.95% at $4.86.
Mineral Resources (ASX:MIN) gained 6.21% to end the day at $35.72 and IGO (ASX:IGO) increased 6.19% to $5.15.
The S&P/ASX200 is Australia’s leading share market index and contains the top 200 ASX-listed companies in terms of market capitalisation, and accounts for about 80% of the country’s equity market. The index is designed to measure the performance of the 200 largest index-eligible stocks listed on the ASX by float-adjusted market capitalisation
It is recognised as the institutional investable benchmark in the country.
Write to Angela East at Mining.com.au
Images: ASX & De Grey
