Leading independent advisory firms have recommended Karora shareholders vote to merge with Westgold as the $1.2 billion deal deadline looms.
Independent firm Institutional Shareholder Services (ISS) was the first to make the call last week, confirming Karora shareholders will see “immediate value”.
“The arrangement carries sound strategic logic as the combined company is expected to deliver meaningful cost synergies, benefit from scale and a stronger financial position, and be more diversified,” ISS said.
Now, a second firm – Glass Lewis – has joined the bandwagon as Karora shareholders are set to vote tomorrow, July 17, at 10:00am Toronto time.
Westgold managing director and chief executive officer Wayne Bramwell has welcomed the support, confident he will be welcoming the Karora team to the Westgold fold by the end of the month.
“The value proposition created by the Westgold–Karora merger is compelling,” Bramwell said.
“With the two leading proxy advisors now independently recommending Karora shareholders vote in favour of this merger, and conditional approval for Westgold’s Toronto stock exchange listing now granted, the completion of this transformational transaction draws even closer.”
If the merger is implemented, Westgold will take ownership over Karora’s Beta Hunt and Higginsville gold mines, both high-performing assets nestled in the same region as Westgold’s iconic Bluebird and Great Fingall mines. Westgold will also own the Lakewood gold mill near Kalgoorlie.
“With their vote for the transaction, Karora shareholders will create a larger internationally investible gold company that is unhedged, well-funded and fully leveraged to the gold price,” Bramwell said.
“The new Westgold will have strategic footprints across two of Western Australia’s most prolific goldfields and have an enhanced team and platform to continue to deliver returns to its shareholders.”
Westgold cleared one of the final hurdles in the merger last week when the Takeovers Panel rejected opposition to the deal from Ramelius Resources.
Karora and Westgold’s boards have unanimously approved the deal between the companies, and encourage Karora shareholders to approve the move.
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