MM’s view on DEG
Dear MM Team, Your analyses have been most helpful with my investments. In your opinion, with the DEG prices at ll ttime high, should one take profit now or wait for the takeover by NST? Thanks and regards Gregory
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Answer
Hi Gregory,
Please excuse the brief answer but the question came in after the midday (AEST) cut off.
De Grey Mining (DEG) closed at $2.10 on Friday +4% whereas Northern Star (NST) advanced +2.8%.
In December 2024, Northern Star Resources Ltd (NST) announced a proposal to acquire De Grey Mining Ltd (DEG) through a Scheme of Arrangement. Under this agreement, DEG shareholders would receive 0.119 new Northern Star shares for each De Grey share held, valuing De Grey shares around $2.13 basis yesterdays close.
- Under the proposed 0.119 NST shares per DEG share offer, the value of the bid to DEG shareholders fluctuates in line with NST’s share price.
DEG is a quasi bullish play on NST with the risk of something going wrong with the deal although we believe its likely to succeed. Hence if we held DEG we would take our $$ and look at another local gold producer if we believed the precious metal would punch above $US3,000.
